After you file your VA disability claim, there is usually a gap between when you are accepted and when you begin receiving benefits. This timeframe results in a situation in which the agency owes you back pay.
This one-time lump sum payment compensates you for the months or even years that you waited to receive your benefits. Our knowledgeable legal team at Fight4Vets to learn how far back the VA will pay you and how the process works.
VA back pay, also called retroactive disability compensation, is calculated by multiplying the monthly difference between a Veteran’s old and new disability rating by the number of months between the effective date and the date the award is granted. If you file your claim within a year of leaving service, the effective date begins with your discharge. Therefore, you should file your claim immediately.
Your disability rating also affects your payment amount. The agency calculates the difference in monthly compensation between the previous rating and the new, higher rating. For example, if your initial disability rating is raised on appeal, the VA will pay the difference in benefits as back pay. In other words, if your initial rating was 10%, and you appealed and were given a new rating of 30%, the VA will give you 20% back pay for the time you were underpaid.
While the VA will likely provide a breakdown of your back pay calculation in your decision letter, the skilled VA-accredited attorneys at Fight4Vets can help you determine your back pay now. We do this by identifying your official effective date on your decision letter to determine when the claim was initiated.
Now, we subtract your old monthly payment from the new, higher monthly payment to determine the difference. The next step is to count the total months between the effective date and the date of the decision, then multiply the monthly difference by how long you went unpaid. After you receive your back pay award, your regular monthly payment amounts begin as promised.
A compassionate VA disability attorney with the largest Veterans law firm in the country can help you file your initial claim, submit an appeal, and calculate the amount of back pay you are due for the time you were unpaid or underpaid. We want you to have the disability payments you are due after your service, so connect with us now for a free consultation.