Social Security Shock: Are You Owed Money or Owe Them Money?
Social Security Overpayments: What You Need to Know
Receiving more Social Security benefits than you’re entitled to can lead to an overpayment situation. Understanding the reasons for overpayments and how to address them is crucial for all beneficiaries.
Common Causes of Social Security Overpayments:
- Inaccurate Information: Errors in benefit calculations often stem from incomplete or outdated information provided by the beneficiary to the Social Security Administration (SSA). This can include changes in marital status, income, living arrangements, or work status.
- Unreported Changes: Failing to notify the SSA of significant life changes can result in overpayments.
What Happens When an Overpayment Occurs?
- Notification: The SSA will notify you in writing of the overpayment amount and the reasons for it.
- Repayment Deadline: You typically have 30 days (plus five days for postal delivery) to repay the overpayment.
- Consequences of Non-Repayment: Failure to repay may result in deductions from future Social Security benefits.
Repayment Options:
- Lump Sum Payment: You can repay the full amount at once.
- Monthly Payment Plan: The SSA can help you set up a manageable monthly payment plan.
How to Avoid Overpayments:
- Keep the SSA Informed: Regularly update the SSA with any changes in your personal circumstances, such as income, marital status, or living arrangements.
- Review Your Benefit Statement: Regularly review your Social Security Statement to ensure accuracy.
Getting Help:
- Contact the SSA: You can contact the SSA by phone or visit a local office for assistance with repayment options and to discuss your specific situation.
Important Notes:
- Overpayments may occur even if the error was not your fault.
- The SSA may be able to waive the overpayment in certain circumstances.
