Regarding an Overpayment Owed to Social Security
The following question was recently brought up --
"What happens if you get a notice of overpayment and you are not on SSI anymore? Do they send you a bill or do they take it out of your work check?"
If you receive an overpayment notice from Social Security with regard to SSI or Social Security disability, you are expected to repay the overpayment. There are a couple of ways that you can resolve the overpayment with Social Security. Social Security does not send bills per say, however they will periodically send you notices about the overpayment. So what are all your options?
You can make a payment arrangement with Social Security. Generally, Social Security would like to have the entire overpayment repaid within thirty six months. However, Social Security will make payment arrangements for longer periods if you can provide information that shows that you are unable to repay the overpayment in three years
(usually a waiver form with just expenses and income verified).
If you feel the overpayment was not your fault and you do not have the means to repay Social Security, you can file a waiver request. Social Security will determine if you qualify for a waiver of the overpayment. If your waiver is approved your overpayment will be removed.
If you do not file a waiver nor make a repayment arrangement it is unlikely that Social Security will garnish your work check, however if you have any tax refunds due you they will be held to repay Social Security.
Lastly, if for some reason Social Security does not collect all monies due them through the above mentioned methods, they will just wait until you become entitled to a Social Security benefit in the future.
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Labels: social security overpayment