How Social Security Handles Overpayments
Although it is unusual for the Social Security Administration (SSA) to pay you more benefits than you are due, mistakes do happen. When overpayment does occur, you can expect the SSA to notify you of the issue. Along with a notification, the SSA will explain what will happen next to correct the discrepancy and notify you of any steps you need to take to rectify the situation.
How Does Social Security Collect Overpayments?
The way the SSA will collect money for Social Security overpayment will depend on what type of benefits you are receiving.
- Supplemental Security Income: If you are currently getting SSI benefits and you received an overpayment, the SSA will keep 10% of your benefit check each month until the overpayment is corrected.
- Social Security Disability Insurance: If you are currently getting Social Security Disability Insurance, the SSA will keep the entire monthly benefit check until the overpayment is corrected.
- What if you are no longer receiving benefits? If you are no longer receiving benefits, you either need to pay the overpayment back within 30 days or set up a payment plan with the SSA.
What Happens if You Don’t Repay the Overpayment?
The SSA expects all overpayments to be repaid in full. If you do not repay the overpayment voluntarily, there are several ways that the SSA can attempt to collect the overpayment. These include:
- Keeping part of your paycheck before you receive it.
- Collecting money from any future SSDI or SSI benefits you may qualify for.
- Taking the amount due from your tax refund.
- Reporting you to the credit bureau.
What if You Do Not Agree With the Overpayment Amount or Cannot Pay?
If you do not believe that you were overpaid or think that the amount stated by the SSA is inaccurate, you can file an appeal. If you think that the overpayment was accurate but feel like paying it back will cause unnecessary financial hardship, you can apply for a waiver. Please contact our firm for assistance with appealing or filing a waiver. A Social Security overpayment attorney is here to help.
