Overpayments can happen anytime money is involved, and Social Security payments are no exception.
Sometimes, the Social Security Administration (SSA) may accidentally send you too much money or even a duplicate payment. So, what should you do if this happens? Let’s break it down for Orlando.
An overpayment is any extra money you receive beyond your usual payment. For example, if you normally get $800 but receive $900, the overpayment is $100. The SSA almost always catches these errors and will send you an overpayment letter.
Overpayments can happen for different reasons. Sometimes, it’s because you didn’t report something important, like how much you worked while receiving disability benefits.
Other times, it might be due to a mistake on their end that only they can explain.
It’s important to deal with the help of a Social Security attorney in Orlando as soon as you get the letter to avoid any complications.
What Can Cause an Overpayment?
There are several reasons you might receive more money than you should from Social Security. Here are some common causes:
- You’re earning more money than expected.
- Your living situation has changed.
- Your marital status has changed.
- You’re still getting benefits even though you’re no longer disabled.
- You didn’t report a required change on time or at all.
- Social Security made a mistake due to incomplete or incorrect information.
- There was an automated error at the SSA.
Changes in How Overpayments Are Handled
Earlier this year, the SSA updated its policies for handling overpayments. Here’s a simple breakdown of the old process compared to the new one:
- Before: The SSA would take the full overpayment amount out of your next check(s).
- Now: They only take 10% of the amount owed from each payment.
- Before: You had to prove you weren’t overpaid.
- Now: The SSA must prove that they overpaid you.
- Before: You had 30 months to pay back the overpayment.
- Now: You can request up to 60 months to repay it.
- Before: Applying for a waiver to avoid repaying overpayments was difficult.
- Now: The process has been made easier.
What Can I Do if I am Overpaid?
The Notice of Overpayment will tell you how much Social Security says you were overpaid and ask you to return the money within 30 days.
Don’t panic! Start by carefully reading the notice.
- Check if the information is correct.
- Are the amounts and dates accurate?
- Try to figure out if you were actually overpaid the amount they claim.
If you’re getting SSDI payments, Social Security will withhold your entire monthly benefit unless you ask for a smaller amount to be withheld.
For SSI payments, they’ll withhold 10% of your monthly federal benefit to recover the overpayment.
If you get a notice about an overpayment, visit SSA’s website to learn more about how they’ll ask for repayment.
If You Don’t Agree with the Overpayment.
If you think you weren’t overpaid or believe the amount is wrong, you can file an appeal using Form SSA-561. In your appeal, explain why you think the overpayment is incorrect. You must submit your appeal in writing within 60 days of receiving the overpayment notice.
Requesting a Waiver
If you agree you were overpaid but believe you shouldn’t have to pay it back, you can file Form SSA-632, Request for Waiver of Overpayment Recovery. There’s no deadline for filing a waiver, but you’ll need to show:
The overpayment wasn’t your fault.
Paying it back would cause financial hardship or be unfair for a specific reason.
Providing Proof
For both appeals and waivers, you may need to provide proof of your income and expenses. You might also need to meet with Social Security staff to discuss your case.
How and When to Report Your Work and Wages?
You should report your wages during the first 6 days of each month for the income you earned the previous month.
Here are several ways to do it:
Online:
Create a free My Social Security account to use the online wage reporting tool, whether you receive SSI or SSDI. Visit www.ssa.gov/myaccount to learn more.
Mobile App (for SSI recipients):
Download the SSI Wage Reporting app on your smartphone to easily report your wages.
Telephone Wage Reporting (for SSI recipients):
You can report your wages over the phone. Stay in contact with your local Social Security office to check if this option works for you.
In-person or by Mail:
Take copies of your pay stubs to your local Social Security office or mail them in. If you choose to mail, using certified mail is recommended, though it comes with a cost.
While you have multiple options, Social Security prefers you use the online tool through your My Social Security account whenever possible.
To Sum Up
Don’t worry if you receive a notice of overpayment from Social Security. Start by reading the notice carefully, and reach out to your SSA worker for help. You can even consider hiring a short-term disability claim lawyer.
Be sure to write down the name of everyone you speak with at SSA and the date of your conversation. This will help you keep track of important details.
