In this article, we'll discuss Social Security overpayments and understand why an overpayment is crucial, as it occurs when you receive more money than you should from the government due to various reasons like changes in income, living situations, or miscalculations.
Overpayment: What is it?
When you are paid more for a given month than you should have, it's known as overpayment. The difference between what you were paid and what is owed is the sum that constitutes your overpayment. You can indicate it keeping check on:
- You are making more money than you anticipated.
- Your living environment shifts.
- Your marital status shifts.
- You exceed the permitted amount of resources.
- You are still receiving benefits even if you are no longer handicapped.
- You fail to notify us of a change as needed, either on time or not at all.
- Your benefits are calculated wrongly by us due to inaccurate or missing information.
What will you do When There is Overpayment?
The bank will notify you by mail of the overpayment and request complete reimbursement within 30 days. Should you continue to receive payments and fail to provide a complete refund, the notification will suggest that the excess money be withheld at the level of the full monthly payment if 10% is less.
- It states the beginning month of the proposed withholding.
- lucidly outline your rights to appeal.
- It indicates how you can request that we examine and waive the overcharge, potentially saving you the money; and
- explains how you can challenge our ruling.
Resources: What Are They?
Money or property that you possess and may sell for a profit is referred to as a resource (sometimes termed an asset). You cannot receive SSI if you are very resourceful. In 2024, a single person's resource restriction is set at $2,000, while for couples it is $3,000. If your assets or income exceed these limits and you have SSI, you will most likely be overpaid.
Certain items you own, like your home if you live there or a single car you drive, are not included in this cap. For kids who receive SSI, the regulations are much more intricate. Social Security may be reached at 1-800-772-1213.
If you receive Supplemental Security Income (SSI), you are required to declare to Social Security your income as well as any resources you receive (such as a house you own jointly with someone else, an extra car, or other assets). You will most likely be overpaid for any month in which you received your SSI benefit in addition to having resources if you fail to disclose them.
Social Security uses a complex formula to determine the overpayment amount when it determines that there are too many resources. For assistance, if Social Security claims you received an overpayment because you've used more resources than the program permits, contact Statewide Legal Services at 1-800-453-3320 (outside of Central Connecticut) or 860-344-0380 (in Central Connecticut).
Social Security will reduce your SSI benefit if you return to work while receiving benefits unless your income is extremely low. You will likely not be approved for SSI if your income exceeds the Substantial Productive Activity threshold, which in 2023 is $1,470 each month pre-taxes or $2,460 if you are blind. Your SSI payments will likely be decreased if your income is below the threshold for Substantial Gainful Activity, but you will still be eligible to receive them.
If Social Security claims I have Overpayment, what can I do?
Social Security will cease paying you SSI benefits if they determine that you have excessive funds until you can demonstrate that you can no longer have them. According to their estimates, Social Security may lower your SSI payout if you have additional income from employment or another source. See above for further details: if you resume employment while receiving SSI. Social Security may deduct up to 10% of your SSI payment from your check if you are still receiving benefits to make up for the overpayment.
How can I Address an Excess Payment?
If you disagree with Social Security's interpretation of the facts, you should submit a Reconsideration appeal. As an illustration:
- Social Security claims to have paid you money that you were never paid.
- Social Security claims you were overpaid, but that sum is incorrect.
- Although Social Security claims you were employed, you weren't.
- Social Security claims you had resources you were not.
- It is untrue for Social Security to claim that someone else paid for your meals or rent.
Reconsideration appeals MUST be submitted within 65 days after the Notice of the payment made date. If you appeal promptly, you can continue to receive your SSI benefits while Social Security renders a determination.
You must complete and submit Form SSA-561-U2 to Social Security to request reconsideration. Write your reasoning for not believing you were overcharged on the form. If Social Security rejects your request for rethinking, you have the option to request an Administrative Legal Judge (ALJ) hearing. Complete Form HA-501-U5 and submit it to Social Security. Unless you have a legitimate reason for being late (you were in the hospital, for example), you must request the hearing within Sixty days of the expiration date on the revision denial letter.
You may request a waiver if you believe the overpayment was your error and you are unable to repay it. The waiver filing deadline is not specified. Social Security should cease deducting payments from your SSI check once you request a waiver while they consider your case. It is not automated; therefore, you will probably need to ask them for it.
The Bottom Line!
Social Security overpayment happens when you get more money than you should from the government. This can occur if your income, living situation, marital status, or resources change, or if there's a mistake in calculating your benefits. If there's an overpayment, they'll let you know and ask for the extra money back. If you don't pay it back, they might reduce your future payments.
