A SOCIAL Security recipient lost her home after being forced to fork over $121,000 in overpayments.
The program, intended to act as a safety net for retirees, has become a major stressor for many sinking under overpayment charges.
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The US government has overpaid billions of dollars in Social Security checks to beneficiaries.
Of the 70.6 million Americans who receive benefits, about a million each year are getting notification letters they were overpaid, according to the Social Security Administration, SSA, per local CBS affiliateKCTV.
The Inspector General's Office told ABC News' Good Morning America, that over $21 billion in overpayments were not recovered in 2022.
The effects of the overpayments have proven devastating for many, with most people being told they owe thousands of dollars after making zero mistakes.
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"I went to my mailbox and saw a letter from Social Security," a Florida resident named Lori told local ABC affiliate WFTV.
She described the notice as a demand letter that expected her to pay the government a whopping $121,000 back after overpaying her Social Security benefits.
And, the office only gave her 30 days.
"I'm so scared I'm going to lose everything," Lori told WFTV.
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The former postal service employee has received around $900 monthly from Social Security since 2001, but the federal government is now asking for a huge chunk of it back.
Out of options, Lori told the outlet she had to sell her house to cover the balance.
'I'll be paying this debt off until I die,' cries mom after receiving Social Security overpayment letter for nearly $15k
"There's not one person I've shared this story with who believes that they could do that," she said.
And yet, Lori's story is all too common.
The U.S. Sun contacted the Social Security Administration for a comment.
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The SSA says it's required by law to recoverdebtif a person got a monthly payment they weren't entitled to.
But these government mistakes have resulted in thousands of recipients in dire straits.
If payments aren't made within the 30-day window, the SSA will begin collecting the overpayment by reducing monthly benefits orSupplemental Security Income.
What to do if you’re accused of receiving overpayments and why does it happen?
There's no statute of limitations on how long Social Security can wait to collect an overpayment, therefore it is key to know why they happen and what to do.
What causes an overpayment?
The SSA incorrectly sends additional benefits you are not entitled to due to incorrect or incomplete information
Your income is more than you estimated
Changes to your living situation
Changes in marital status
You receive more resources than allowed
You are no longer disabled but continue to receive benefits
Changes are not reported to the SSA on time or at all
What should you do if accused of an overpayment?
Inform the SSA if you were a minor child receiving Foster Care benefits, and the state was your representative payee when you were overpaid.
Request a reconsideration if you believe you were not overpaid or the amount is incorrect.
Appeal within 60 days from the date of the overpayment notice.
If you feel that the overpayment was not your fault and you cannot afford repayments, request a waiver of the overpayment and complete form SSA 632.
The U.S. Sun previously reported on another woman who lost her apartment and said she had to sleep in hercar after the SSA demanded $57,968.60.
Meanwhile, an elderly woman's late husband was said tohave owed $34,048.40 from payments distributed between January 2021 through August 2022.
She began scrambling to make ends meet, relying on her brother as a financial resource and held out hope the SSA could waive the overpayment due to her financial struggles.
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One recipient told the story of how the SSA "took all [her] benefits"after an overpayment of $13,000.
Plus, a former teacher said Social Security sent them a notice for a$2,000 overpaymentafter they were laid off.
If you believe that you may have been overpaid, but feel that it was not your fault and you cannot afford to pay us back, you may ask for: A waiver of the overpayment.And complete form SSA 632 (Request for Waiver of Overpayment Recovery).
9. What Will Happen to My SSI If I Have an Overpayment? SSA will ask you to pay the full amount of the overpayment within 30 days. If you don't do this, and you are still eligible for SSI, then SSA will take the lesser of 10% of your total monthly countable income or your entire monthly income.
If you got a letter in the mail that says you were overpaid and need to pay us back, you can request a waiver. Ask us to waive repayment if you can't afford it and feel the error wasn't your fault, or if you believe the overpayment is unfair for another reason.
The burden of proof for determining whether a beneficiary was at fault for an overpayment will shift from the beneficiary to the SSA. Most beneficiaries who request repayment plans will be able to get up to five years to pay off the debt. Previously, the maximum was typically three years.
The DWP can agree to waiver (write off) the overpayment. However this will usually only be done in exceptional circ*mstances where recovery action will result in severe welfare issues for you or your family. The DWP will also look into the circ*mstances of the overpayment.
In bankruptcy, Social Security overpayments are treated as unsecured debts similar to credit card debt and medical bills. So if you are unable to pay back your Social Security overpayment, filing for bankruptcy relief can allow you to discharge your obligation to the SSA.
You can ask for a waiver by submitting a completed SSA-632, Request for Waiver of Overpayment Recovery, to your local office. If your overpayment is $1,000 or less, we may be able to process your waiver request quickly by telephone.
As of March 25, 2024, the agency will collect ten percent (or $10, whichever is greater) of the total monthly Social Security benefit to recover an overpayment, rather than collecting 100 percent as was previous procedure. There will be limited exceptions to this change, such as when an overpayment resulted from fraud.
Your employer should adjust the excess for you. If the employer doesn't adjust the overcollection, you can use Form 843, Claim for Refund and Request for Abatement to claim a refund. Attach copies of your Forms W-2, Wage and Tax Statement for the year to Form 843.
Social Security can potentially be subject to tax regardless of your age. While you may have heard at some point that Social Security is no longer taxable after 70 or some other age, this isn't the case. In reality, Social Security is taxed at any age if your income exceeds a certain level.
If you're on SSI and recently received a large sum, you can utilize a “spend-down” to ensure that you remain with SSI's resource minimums. Per the SSA, a “spend-down” involves spending the cash that you've received until you're below the resource maximum.
Typically, when the SSA decides to start an investigation, they will have an investigator follow you at your Consultative Exam. The people who follow you are not police officers. The reason the SSA may spy on you at your Consultative Exam is that they know you will be at the exam.
Ask for a reconsideration if you think the amount of the overpayment is wrong or that the reason SSA gave for the overpayment is wrong. Ask for a Waiver. If you agree that you were overpaid, you can still ask SSA to waive it so that you don't have to pay it back.
On March 20, 2024, Commissioner O'Malley introduced a four-step plan to change how claimants who receive an overpayment can repay it. First, as of March 25, the Social Security administration will no longer take back 100% of Social Security benefits when a claimant doesn't respond to a demand for repayment notice.
You might face serious consequences if you don't pay back an SSDI overpayment. The Social Security Administration (SSA) might temporarily pause your monthly benefits. Your federal tax refund and employment check might be affected, as well as your credit.
If you had to repay an amount of Social Security Benefits that you included in your income in an earlier year, you may be able to deduct the amount repaid from your income for the year in which you repaid it.
If you are younger than full retirement age and earn more than the yearly earnings limit, we may reduce your benefit amount. If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2024, that limit is $22,320.
By law, the agency must claw back overpaid benefits, but SSA's policies had sparked outrage and concern after some Social Security recipients reported surprise bills that demanded payment within 30 days. Sometimes the bills mounted into the tens of thousands of dollars.
Introduction: My name is Margart Wisoky, I am a gorgeous, shiny, successful, beautiful, adventurous, excited, pleasant person who loves writing and wants to share my knowledge and understanding with you.
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