Maximum Attorney Fee for Social Security Disability

Under SSA rules, attorneys are typically allowed to charge a fee that is:

• A contingent fee of up to 25% of your past-due benefits (also known as “back pay”).
• Capped at $7,200 for most cases (as of 2023).

This means the attorney can receive a maximum of 25% of the benefits you are awarded, but only for past-due benefits. If your attorney is successful in getting you approved for benefits, and you are owed back pay, they can charge up to 25%  of that amount, with the fee being limited to a maximum of $7,200.

How the Contingency Fee Works

• Contingency basis: Most disability attorneys work on a contingency fee basis, which means they only get paid if you win your case. If your claim is denied, you typically won’t owe any attorney fees.
• Back pay: If your claim is successful and you’re awarded benefits, you may receive back pay for the time between your application date and the approval date. The attorney's fee will be based on that back pay.

Example of How the Fee is Calculated

Let’s say you are awarded $30,000 in back pay for your Social Security Disability claim. The maximum fee an attorney could charge would be 25% of $30,000, which equals $7,500. However, the SSA’s cap means the attorney can only collect $7,200, so that would be the maximum fee they could charge.

How the Fee is Paid

Once you win your claim and receive your back pay, the Social Security Administration (SSA) will automatically review the fee arrangement. If the attorney has been approved to represent you, they will request the fee from the SSA, who will deduct it from your back pay and send it directly to the attorney. You won’t have to pay the attorney separately for this fee.

Can Attorney Fees Be Higher than the Maximum?

In most cases, the SSA limits the attorney fee to the maximum $7,200. However, there are some circumstances where a higher fee might be requested, and the attorney would need to ask the SSA for approval.

• Extraordinary circumstances: If the case is extremely complicated or requires additional legal work, the attorney may request a higher fee. For example, if the case requires significant time or involves complex legal issues, the attorney might argue that the maximum fee cap is not enough for the work performed.
• Administrative Law Judge (ALJ) hearings: If your case progresses to an ALJ hearing or a federal court, the attorney may ask for more compensation if the work involved was much more intensive.

Are There Any Other Costs?

In addition to the attorney's fees, there may be additional costs related to your case, including:

• Filing fees for your disability claim or appeal.
• Costs for obtaining medical records, expert opinions, or other necessary documents.
• Other administrative costs that may arise as part of the case.

These costs are separate from the attorney's fee and may be billed to you as they are incurred. In some cases, your attorney might cover these costs upfront and deduct them from your back pay if your claim is successful.

No Fee for Non-Contingent Services

If your attorney provides services that are not related to your Social Security Disability claim (such as general legal advice or other unrelated legal services), they may charge a standard hourly rate for those services. However, the contingency fee rules only apply to the disability claim itself.