Social Security Overpayment, Now What?

The Social Security Administration is usually pretty good about paying you what they say they will, but sometimes, glitches in the system amount to Social Security Overpayments. The process for rectifying or contending Social Security Overpayments can be difficult to navigate, but here are some helpful tips: 

Social Security Overpayments, now what?

If you are overpaid, the Social Security Administration will send you a notice highlighting the reasons for the overpayment, and your options in regards to repayment. Also included in this notice will be your waiver rights. You should review this notice carefully. If you need clarification or someone to walk you through your options, contact Normand and Associates for your free consultation. 

Payment Options

If you believe that the notice is accurate and choose not to appeal, you can pay it back in a number of different ways. If you are already receiving Social Security benefits, the Social Security Administration will withhold your benefits check, beginning 30 days after you have received the overpayment notification, until the discrepancy has been rectified, unless you request a payment plan. 

Though, this is not the only way to pay back what you owe. Many times, in lieu of the full withholding of your Social Security benefits check, your SSI check can be manipulated, usually to the tune of a 10% monthly withholding, until the situation has been resolved. If 10% is too high, you can ask for a reduced rate. The Social Security Administration will not begin withholding funds until 60 days after you receive the overpayment notification. If you are no longer receiving SSI but still receiving Social Security Benefits, your Social Security check will be reduced by 10% until everything is paid back. 

What if I am no longer receiving benefits?

If you have been overpaid but you are no longer receiving benefits, you must send a check to the Social Security Administration within 30 days of having received the overpayment notification, or contact the Social Security Administration to get on a payment plan. If you do not attempt to contact the Social Security Administration for a payment plan or refuse to pay, they can garnish your wages from your employer or take it directly from your Federal tax refund check. Failure to pay will be reported to the appropriate creditors. 

Can I appeal?

If you believe that you have not been overpaid, you must file a SSA-561 form with the Social Security Administration, along with a written appeal. The dedicated Social Security professionals at the Disability Rights Center can help you do that. This form can be found online or at your local SSA office. You must file within 60 days of the date on the overpayment notification. Thereafter, you must have a good reason for having waited longer than 60 days to push the appeal through. 

Unless you can provide sufficient evidence to the contrary, the Social Security Administration will assume, by default, that you received the notice within five days of them having mailed it out. If, for some reason, you feel as though you should not need to pay the money back, you can file an SSA-632, for which there is no time limit. For this, you would need to prove that the overpayment was the fault of the Social Security Administration or that paying it back would result in financial hardship. If it would result in financial hardship, you will be asked to provide proof of your income. 

As you can see, you have options and it is always best to consult with a professional. Contact us today for a completely free consultation to find out what your choices are.

Articles contained here are not intended to provide legal advice, only providing general information. We encourage individuals to consult with an attorney regarding individual circumstances.