Once you get the approval and start collecting Social Security you may feel relieved. However, there are some occasions when you wish you had never collected any payments. Getting an overpayment notice can be something really unpleasant.
Not having enough money to give it back to the Social Security Administration can be quite shocking and devastating. For those who are new to this topic, they must be wondering what overpayment is, so let’s explain it first.
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Sometimes you are entitled to Social Security benefits and you get an amount that is accurate. However, your situation may change and you may no longer be entitled to that amount. That happens when your income is higher than allowed. Overcoming a disability and getting married are just some examples.
How many people have been affected by Social Security overpayments?
Kilolo Kijakazi (Social Security Acting Commissioner ) said during her testimony at a congressional committee last month that there were $1,028.389 people affected in 2022. That is a great deal of people who have received notices of overpayment.
During the fiscal year 2023, there were also almost a million people who got overpayment letters. The exact number was $986,912. In total, there are more than two million Social Security beneficiaries who have received notices.
The thing is these overpayments are quite a lot of money. Some beneficiaries claim that they owe tens of thousands of dollars. CBS News reports a case of a man whose mother collected SSI (Supplemental Security Income) because of his disability as a child.
Apparently, he owes Social Security more than $4,900 dollars. After several surgeries and medication, he was able to lead a normal life as an adult. Of course, he has got some limitations but he works full time. SSA claims the money even if he never applied for benefits as an adult.
What can I do if I get an overpayment notice?
The Social Security Administration states that you must pay the money back. As a matter of fact, you have 30 days to do so. However, they will allow you to have 5 extra mailing days. So, as soon as you get the overpayment notice, you have about a month to take action.
If the Social Security Administration does not receive the money you owe them, they will then start to look for ways to collect this overpayment money. Make sure you send a request for reconsideration or waiver.
In this way, you will have more time to gather the money if they refuse the reconsideration or waiver. Sending any of these requests will mean SSA will not start collection of the overpayment. So, you will have to wait until a decision is made.