Wednesday, February 25, 2009

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.

Return to the Social Security Disability SSI Benefits Blog

Other Posts

Applying for Disability Based on MS, Multiple Sclerosis
Applying for Social Security Disability Easier online
Income from a spouse - will it affect whether or not I can get disability ?
How to get SSI - How to get approved for SSI
What Do You Need to Bring When You are Applying for Social Security Disability Benefits?



Blogger KristinBrianne said...

What if you had your benefits taken away because of work, after repeatedly telling them for years you were working and them telling you that your Income Related Work Expenses covered it so you didn't have to worry, and now you're back on disability? They denied my waiver, but the only income my husband and I have is my disability. We can't afford any more bills or anything to be taken out. Can you keep appealing or is the personal conference the only option you have to get the overpayment waiver approved? I'm really scared, it's a lot of money and I'll never have it or be able to work full time again.

2:42 AM  
Blogger Disability Blogger said...

Kristin, I responded to your comment in a separate post:

Social Security Disability Overpayments and Getting an Overpayment Waived

4:13 AM  
Blogger Donny said...

Well for 10 years I have battled a Stage 4 Cancer and received disability. My last scans showed a remarkable increase in metastat5ic disease. Then I get a letter saying I was overpaid for the Year 2008. You see I have a wife who has severe Fibromyaglia and doesn't work and 2 elementary school kids and they receive SSI based on my disability. I also receive medicare. To survive I've dabbled in selling travel club packages online and for a while I did well until the company allowed the payplan to be manipulated and I was cut out of my commissions. So,I invested in a scam(thought it was legit) and lost everything. Now I am so broke I even had to accept energy assistance. Without our disability payments we will be homeless. This payment covers the rent. Then last year I had surgery for another cancer(melanoma). I have been on the most powerful medications for the last 10 years straight and am totally disorganized and mentally down. Ignorance is no excuse but I honestly had no idea they could take my disability away.

Please HELP!!!! THANKS!!!

6:51 PM  
Blogger Disability Blogger said...

Donny, I responded to your situation here: Stage 4 Cancer, Work, and Social Security Disability Overpayment Waiver

11:41 AM  

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