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Dealing With Social Security Disability Overpayments


When it comes to government benefits like Social Security Disability Insurance (SSDI), some people just can’t win. They may wait many months for their benefits. And then once they start spending them, they may get a letter stating that they have been overpaid. The overpayment could be a few hundred dollars or even tens of thousands of dollars.

The money has been spent. You’re barely scraping by as it is. So what happens now? Do you really have to pay back the money even though it wasn’t your fault?

Most likely, yes, unless you disagree with the action and want to appeal it. You do have appeal rights. An appeal allows the Social Security Administration (SSA) to look over your overpayment notice again. You can request reconsideration if you believe the amount or reasoning is incorrect. You can submit an appeal by submitting form SSA-561.

But you need to act quickly. If you don’t take action and fail to repay the Social Security Administration (SSA) within 30 days, your benefits will be withheld until the overpayment is cleared. However, you can request a lower withholding amount and see if the SSA will approve your request.

If you have been overpaid, you will receive a letter from the SSA. The notice will tell you how much you were overpaid and why. You’ll also get information about repaying the overpayment and your appeal and waiver rights.

Why Was I Overpaid?

An overpayment occurs when the agency sends you more money than you were entitled to receive. The reason for an overpayment can vary, but for SSDI recipients, the most common issue is that your disability status changed and you returned to work but did not alert the SSA. Therefore, you continued to receive benefits that you should not have received.

Another reason for an overpayment is if you were convicted of a criminal offense and in jail for more than 30 continuous days while receiving your SSDI benefits.

How Do I Get Help?

If you have received an overpayment letter, there are resources that can help you understand your options. Programs such as Registered Social Security Analysts and the National Organization of Social Security Claimants’ Representatives can assist beneficiaries with disputes like these. You can also seek help from a competent SSDI lawyer.

Learn More About Social Security Disability Benefits

When it comes to benefits, many recipients don’t think about the effects of overpayment or even think it can happen to them. However, an overpayment can cause a lot of stress, especially if you are already strapped for cash, like most recipients.

Have you received a notice of overpayment? Don’t stress out. Get legal help from a White Plains Social Security Disability lawyer from The Law Office of Michael Lawrence Varon. We’ll assess your situation and advise you of the next steps. To schedule a free consultation, call (914) 228-1770 or fill out the online form.



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