What a plus up payment is

A plus up payment is an extra check Social Security sends you when your monthly SSDI amount increases. It covers the difference between what you were receiving before and what you should have been receiving, going back to the month the increase started.

The most common reason for a plus up is a cost-of-living adjustment, or COLA. Every year in October, Social Security raises all SSDI payments by a percentage set by federal law. If you were receiving $1,200 a month and COLA raises it to $1,248, Social Security sends you a lump sum for the months between October and whenever you receive your first adjusted check.

Plus ups can also happen if Social Security corrects an error in your payment history, if you reach full retirement age and your benefit amount changes, or if you were overpaid and the agency later determines you were actually underpaid instead.

Key Takeaways

  • A plus up payment is a lump sum covering the difference between your old monthly amount and your new monthly amount, going back to when the increase started.
  • The largest plus ups come from annual cost-of-living adjustments in October, which affect nearly all SSDI recipients.
  • You do not need to do anything to receive a plus up—Social Security calculates and sends it automatically.
  • Plus up payments arrive as a separate check or direct deposit, usually within a few weeks of your first adjusted monthly payment.

When you receive a plus up payment

The timing depends on why your payment increased. For a COLA adjustment, Social Security typically sends the plus up in the same month as your first adjusted payment, or shortly after. If you receive benefits on the 3rd of the month, for example, you might see your first $1,248 payment on the 3rd and the plus up check a week or two later.

If Social Security corrects a payment error or recalculates your benefit, the plus up may take longer—sometimes several weeks—because the agency has to review your entire payment history and verify the new amount. During that time, you will continue receiving your current payment amount.

You will receive a notice in the mail explaining the increase and showing how much the plus up covers. Keep this notice with your tax records, because the plus up is taxable income in the year you receive it, even though it represents payments from previous months.

How the amount is calculated

Social Security multiplies the difference between your old and new monthly rate by the number of months the increase covers. If your payment rose from $1,200 to $1,248 (a $48 increase) and the COLA took effect in October, you receive $48 for each month from October through the month before your first adjusted payment arrives.

The calculation is straightforward because Social Security already has your payment history on file. The agency does not round or estimate—it uses the exact amounts you received each month and the exact new amount you are now may have access to to.

If you were receiving a reduced payment because of work earnings or other reasons, the plus up reflects only the increase to your actual payment amount, not the increase to your full benefit rate. For example, if your full benefit rose by $50 but your actual payment rose by only $30 because of earnings deductions, the plus up is based on the $30 increase.

Plus ups and your taxes

The Internal Revenue Service treats a plus up as income in the year you receive it. If you receive a $500 plus up in November, you report it as 2024 income on your 2024 tax return, even though part of it represents payments owed from earlier months.

Social Security will not withhold taxes from the plus up unless you have already asked the agency to withhold from your regular SSDI payments. If you do not have taxes withheld and you owe federal income tax, you may want to set aside part of the plus up to cover what you will owe.

You will receive a Form SSA-1099 in January showing the total SSDI you received in the previous year, including any plus up payments. Use this form when you file your taxes.

Plus ups and other benefits

Receiving a plus up does not affect your SSDI payment going forward. Your new monthly amount stays the same until the next COLA or until Social Security makes another change to your benefit.

If you receive Supplemental Security Income (SSI) in addition to SSDI, a plus up to your SSDI might reduce your SSI payment. SSI has strict resource and income limits, and a lump sum can push you temporarily over the resource limit. Contact your local Social Security office before you receive a large plus up if you also receive SSI, so you understand how it might affect your other benefits.

If you receive Medicare, the plus up does not change your premiums or coverage. If you receive Medicaid, check with your state program, because some states count lump-sum payments differently than monthly income.

What to do if you do not receive a plus up you expect

If your SSDI payment increased but you did not receive a plus up check, contact Social Security at 1-800-772-1213. Have your Social Security number and the date your payment increased ready. Social Security can tell you whether a plus up was sent and, if so, when it should arrive.

If you receive benefits by direct deposit, the plus up may take longer to appear than a paper check. Banks sometimes hold deposits for a few business days, especially if the amount is large or unusual for your account.

Keep the notice Social Security sent explaining your payment increase. If there is a delay, this notice helps you prove the plus up was owed and when it should have arrived.

Frequently Asked Questions

Can I refuse a plus up payment?

No. A plus up is not optional—it is money you were owed and Social Security sends it automatically. If you believe the amount is incorrect, contact Social Security to request a review, but you cannot decline the payment itself.

Do plus ups count as income for housing information or other programs?

It depends on the program. Most housing information and food information programs count lump-sum payments as a temporary increase to your income, which might affect your benefit for one or two months. Contact the program directly before you receive a large plus up to understand how it will be treated.

What if I was overpaid and Social Security is taking back money—can I still get a plus up?

Yes. Social Security calculates your plus up based on your correct benefit amount, separate from any overpayment recovery. If you owe money back, Social Security may reduce your regular monthly payment to recover it, but the plus up is still calculated and sent based on the increase you are owed.

Will I receive a plus up if I just started receiving SSDI?

No. Plus ups only explore to months when you were already receiving a payment. If you started SSDI in November and the COLA took effect in October, you do not receive a plus up for October because you were not receiving benefits then.

How do I report a plus up on my taxes if I do not usually file?

If your only income is SSDI and the total is below the filing threshold for your age and filing status, you may not need to file. However, if a plus up pushes your total income above the threshold, you will need to file that year. The IRS website has a tool to help you determine whether you must file.