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Resolving an Overpayment of your Social Security Benefits - Social Security Administration
No one likes to repay Social Security money they have received (and likely have already used). But mistakes do sometimes happen, usually due to a beneficiary’s lack of knowledge of Social Security’s rules or, sometimes, because the Social Security Administration itself made an error when paying monthly benefits. Regardless of the reason, if you are paid SS benefits that SS believes you are not entitled to, you will receive an “Overpayment Notice” from Social Security in the U.S. mail. And that, obviously, will not be a welcome event.
So what should you do? Well, the Overpayment Notice should explain why SSA believes you were overpaid, and will include instructions on how to repay what is owed. You can repay what is owed in full, or you can request a repayment plan which is less financially burdensome. You will have 30 days before Social Security takes any unilateral action to collect. But if they don’t hear from you within 30 days, they will automatically begin withholding half (50%) of your monthly SS retirement, spousal, or survivor benefit amount until they recover what is owed (if you receive Supplemental Security Income (SSI), they will withhold 10% of your monthly SSI benefit amount). If you agree that you were overpaid and agree with the amount of overpayment, you can simply allow the automatic benefit reduction to occur. But in many cases (obviously depending on circumstances) you also have other options:
If you cannot afford to repay the amount requested or if you think the overpayment was not your fault or is unfair for any reason, you can request a waiver of the overpayment amount.
If you agree that an overpayment occurred but dispute the amount, you can question Social Security’s decision by filing an appeal.
But whatever the case, be sure to engage with Social Security at 1.800.772.1213 within 30 days from the date of the Overpayment Notice to make an appointment to discuss your options. All of this is explained in this SSA Advisory.
Social Security is a complex topic. If you’re unsure about how these basics apply to you, or if you have any questions about your individual situation under Social Security or enrollment in Medicare, note that the AMAC Foundation provides a free-to-the-public advisory service to help Americans navigate the complexities of these programs. All questions are answered quickly, at no charge. Learn more about it here…