Overpayment Notice From The SSA - The Bills.com Blog

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Overpayment Notice From The SSA

Tuesday, Jul 21, 2009

Question: My mother lives with me and she received SS income until she got an overpayment notice. She is required to pay back a huge amount (three years worth.) It is my fault for using an account with both our names on it for paying bills. I did not think that it was going to affect her in any way. I innocently thought she should have access to the money if anything should happen to me. Now I am filing a reconsideration and they want on the form all the financial information of the members of the household. Do they have the right to know all about us since she is living in our home and we take care of her and not the other way around? Also, she has never earned income and she does not own anything. She was divorced in another country and there is no community property there.

Answer: The Social Security Administration uses various formulas for determining whether or not an individual is eligible for Supplemental Security Income (SSI); in doing so, they often need the financial information of the applicant’s entire household, not just that of the applicant herself. The SSA has several reasons for needing this information; first, if the applicant is married, some or all of the spouse’s income may be included in the applicant’s income calculation.

Second, even if the applicant is not married, if she is living with someone who is helping to pay her living expenses (which sounds more like your mother’s situation), the money that the third-party pays toward the applicant’s expenses can be
considered as income for the applicant. These examples are only a couple of the various instances in which the SSA may use the applicant’s household financial information rather than limiting itself to reviewing the income of the individual applicant.

Because of the rather strict qualification guidelines the SSA uses in determining eligibility for SSI benefits, you may be wise to fully disclose your household income and financial circumstances. Failing to provide household income and asset information could result in a delay in the processing of your mother’s claim and appeal, and it could lead to her request for reconsideration being rejected by the decision appeals board. If you are concerned about disclosing the requested information, or if you simply would like some professional advice on how to proceed with your mother’s appeal, I encourage you to consult with an attorney in your area who has experience working with the Social Security Administration.

You must remember that the SSA uses complex formulas to determine eligibility for SSI benefits; the fact that it is requesting a financial statement for your entire household does not necessarily
mean that your family’s income will necessarily affect her ability to receive SSI benefits or retain those already paid to her. Your mother’s income should remain the primary focus of the SSA’s review; your income will likely only be considered to the extent that you support your mother by providing her with a place to live, food, medicine, etc. Since those items would normally come out of her own income, the SSA may view your providing these items to your mother as a means of indirectly supplementing her income, which could affect her eligibility and what action the SSA takes in regard to the "overpayment."

Again, I encourage you to consult with an attorney with experience in working with the SSA. After reviewing yours and your mother’s financial information with the attorney, he should be able to assist you in formulating a plan to resolve the SSA’s overpayment claim. To read more about SSI, and Social Security in general, you can visit SocialSecurity.gov. I wish you and your mother the best of luck in your efforts to resolve this dispute with the SSA, and hope that the information I have provided helps you Find. Learn. Save.

Best,
Bill
www.bills.com

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