SSDI Overpayments: How They Affect Recipients
Being disabled can be a challenging experience. You may be rejoicing after waiting months or even years to receive your Social Security Disability Insurance (SSDI) payment. But are you entitled to receive every dollar you are given? Maybe not.
A disabled mother of a teen who is struggling with schizophrenia and poverty recently received a $32,000 bill from the Social Security Administration. The woman unknowingly earned too much income while trying on SSDI and trying to make ends meet. Now, the SSA is asking for repayment of every dollar they say she was overpaid.
While overpayments can be frustrating to deal with, they happen more often than you may think. Overpayments can happen to anyone — even to people doing their best to survive. To avoid such a situation, anyone receiving SSDI or SSI should report all income promptly and review every letter from the Social Security Administration (SSA) carefully. If you do receive an overpayment notice don’t ignore it. Take action right away.
How Does an Overpayment Happen?
The Social Security Administration (SSA) issues overpayments when people receive more benefits than they are legally entitled to. This often happens due to factors like unreported income or work activity. For example, one person shared that their mother-in-law took on extra shifts while receiving disability benefits to help her family, despite struggling financially. While her actions may have been out of necessity, the SSA requires beneficiaries to report any income or employment changes. Failure to do so — whether or not it is intentional—can trigger a demand for repayment.
You will receive an overpayment notice, which is a formal notification from the SSA stating that she was overpaid and must repay the excess amount. The SSA will typically suspend current benefits until the overpayment is recovered. If the person is no longer receiving benefits, the agency can recover the debt through tax refund offsets or wage garnishment.
How to Handle an Overpayment
If you receive an overpayment notice from the SSA, there are options to challenge or reduce the amount owed. According to the SSA, you have the right to:
- Appeal the decision if you believe the amount is incorrect or you were not actually overpaid.
- Request a waiver if the overpayment wasn’t your fault and you can’t afford to repay it.
To appeal, you must file Form SSA-561 within 60 days of receiving the notice. A waiver request can be submitted at any time using Form SSA-632. If the overpayment is under $1,000, simply calling your local SSA office may be enough to initiate the process.
The waiver process considers both your financial situation and whether you failed to report required details like income. If your request is denied, you may still be able to set up a repayment plan. Sometimes the payments are as low as $10 a month, depending on your finances.
Learn More About Social Security Disability Benefits
It can be nice to receive a huge chunk of money for SSDI benefits, but when it’s deemed an overpayment, it can be a frustrating matter.
Need help with disability benefits? Get assistance from White Plains Social Security Disability lawyer from The Law Office of Michael Lawrence Varon. We can answer your questions about the process. Schedule a consultation today by calling (914) 228-1770 or filling out the online form.
Source:
finance.yahoo.com/news/she-lives-extreme-poverty-why-163022505.html
