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Social Security Administration Overpaid Me $18K & Now Wants It Back
Tuesday, Sep 8, 2009
Question: What if someone owes $18,000 to the Social Security Administration from overpayment from when they were younger and now the SSA wants the money back? What can the government do if they don't repay it? They are not disabled and work a normal, minimum-wage job. They can't afford to pay it back.
Answer: Because of the complex formulas used to calculate benefits, and the huge number of beneficiaries in the system, the Social Security Administration (SSA) inevitably makes mistakes in benefits payments from time to time. These mistakes can result from errors made by applicants in completing SSA forms, or by errors on the part of the SSA, such as typos when inputting beneficiary information.When the SSA realizes it has overpaid a beneficiary, they will send the individual a letter requesting that recipient pay back the money which he/she received in error. However, the SSA knows that some of the people who it has overpaid in the past are not financially capable of compensating the SSA for the overpayments, which can be substantial, especially if the error was not caught and corrected quickly.
The SSA has a whole section on its Web site discussing overpayment issues and what you can do if you either think that you were not overpaid, or if
you cannot afford to pay back the money. You can visit Understanding Supplemental Security Income Overpayments for more information. Also, the forms you need to complete are available at Request For Waiver Of Overpayment Recovery Or Change In Repayment Rate - Form SSA-632-BK .
If you claim inability to repay the debt due to financial hardship, you will need to submit the appropriate form (see SSA website above) along with proof of your inability to pay, such as your paystub, rent receipts, and utility bills, receipts for medications and other medical care, and any other documentary evidence supporting your claim that you do not have enough money to repay the SSA after meeting your family’s basic living expenses.
The SSA will review your request, and if it approves the request, it may entirely or partially waive the overpayment obligation. If the SSA rejects your request, you do have the option to file an appeal; depending on the amount of money in question, it may be wise to
If you claim inability to repay the debt due to financial hardship, you will need to submit the appropriate form (see SSA website above) along with proof of your inability to pay, such as your paystub, rent receipts, and utility bills, receipts for medications and other medical care, and any other documentary evidence supporting your claim that you do not have enough money to repay the SSA after meeting your family’s basic living expenses.
The SSA will review your request, and if it approves the request, it may entirely or partially waive the overpayment obligation. If the SSA rejects your request, you do have the option to file an appeal; depending on the amount of money in question, it may be wise to
hire a lawyer to assist you with the appeals process.
Many legal aid and other pro bono legal services can assist with SSA overpayment disputes (for an example of the types of help you may be able to receive through legal aid, you can visit Pine Tree Legal Assistance's page How to Cope with Social Security Overpayments ).
In a worst case scenario, the SSA may be able to garnish your wages and seize other assets, such as money in your bank accounts, to collect this debt. This extreme action is only likely to happen if you ignore the problem and do not communicate with the SSA to work out some type of solution, either a waiver, deferment or repayment, or an affordable payment plan.
I wish you the best of luck in resolving this dispute with the Social Security Administration, and hope that the information I have provided helps you Find. Learn. Save.
Regards,
Bill
www.bills.com/blog
Many legal aid and other pro bono legal services can assist with SSA overpayment disputes (for an example of the types of help you may be able to receive through legal aid, you can visit Pine Tree Legal Assistance's page How to Cope with Social Security Overpayments ).
In a worst case scenario, the SSA may be able to garnish your wages and seize other assets, such as money in your bank accounts, to collect this debt. This extreme action is only likely to happen if you ignore the problem and do not communicate with the SSA to work out some type of solution, either a waiver, deferment or repayment, or an affordable payment plan.
I wish you the best of luck in resolving this dispute with the Social Security Administration, and hope that the information I have provided helps you Find. Learn. Save.
Regards,
Bill
www.bills.com/blog
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1. Posted by twankea on Monday 14th September 2009 11:52
i need to know if i owe the social security adminstration $5,120 can they take my 2009 federal tax refund to get the money back.
2. Posted by Bill on Monday 14th September 2009 12:33
The Social Security Administration has the option of withholding your overpayment from a Federal Income Tax refund and/or from any future Social Security benefits you may receive.