How Attorney Fees are Calculated and Paid
In all Social Security
Disability and Supplemental Security Income (SSI) cases, the
rules for calculating attorney fees are the same. The fee is
set by federal regulation – 25% of the back benefits obtained
for the claimant, up to a maximum fee of $4000.
As an example, if a claimant received back benefits of $10,000
the attorney fee would be 25% of that amount – $2500. If the
back benefits were $30,000 the attorney fee would be limited
to the maximum of $4000, even though that is less than 25% of
the total back benefits.
SSI and Social Security fees are paid in two different ways.
In Social Security cases, the fee is withheld from the back
benefit paid to the successful claimant. Twenty-five percent
is withheld, Social Security approves the fee and the fee is
then sent directly to the attorney. In SSI cases, no fee is
withheld. This means the client must pay the attorney when the
client receives the back benefit check.
Confusion may arise when a claimant is paid both SSI and
Social Security, a very common occurrence. Part of the fee may
come from each, but in no event will the total fee be more
The Social Security Administration sends award letters to
claimants after they win their claims. Unfortunately, these
letters often give incomplete or misleading information about
the attorney fee calculations. Customarily a fee is paid by an
SSI claimant as soon as the award check is received by the
claimant. However, federal law requires that this money be
held in an attorney escrow account until the fee is actually
approved by the Social Security Administration.
At Kraft & Associates
there is no charge for the initial Social Security or SSI
consultation. We invite you to contact us with any question
you may have regarding Social Security disability.
Kraft & Associates
2777 Stemmons Freeway
Dallas, Texas 75207
Dallas: (214) 999-9999
Fort Worth: (817) 999-9999
Toll Free: (800) 989-9999
FAX: (214) 637-2118
Please direct general business inquiries to:
Ms. Nita Maki, Office Administrator