Q: What should I do if I get notice of an overpayment?
A: First, figure out whether SSA is right in claiming it overpaid you.
If you feel SSA made a mistake, you should file a request for reconsideration.
However, if you agree that you have been overpaid but you do not think
the overpayment was your fault, you should ask SSA to waive the overpayment.
If SSA waives the overpayment, it will not collect the money it overpaid
you. You can file a request for reconsideration or a waiver at your local
Social Security office.
Q: Under what circumstances will SSA waive an overpayment?
A: Generally, SSA will waive an overpayment if you demonstrate two
things: (1) The overpayment is not your fault; and (2) You cannot
afford to pay the money back.
Q: How does SSA determine fault?
A: In determining fault, SSA looks at the circumstances that gave rise
to your overpayment. If you provided SSA with all the information it requires
from you, but SSA failed properly to process that information, then SSA
is likely to find that the overpayment was not your fault. Also, if you
had no reason to know SSA was making a mistake in its calculation of your
payments, it should find you not at fault. However, if you fail to give
SSA the information it requires (for example, about your work), or if you
knew SSA was overpaying you but cashed the checks anyway, then SSA is more
likely to find you at fault.
Q: How does SSA determine whether I can afford to pay the money back?
A: If you receive any SSI, SSA will assume you are unable to repay
what you owe. However, if you receive only DIB, then SSA will look at your
financial situation. In that case you generally complete a financial statement,
which is part of the waiver form. In completing the form, you should fully
account for your income and expenses.
Q: What measures can SSA take to collect an overpayment?
A: If SSA does not waive your overpayment, it may start collecting
30 days after it notifies you of the overpayment. SSA can collect only
up to 10 percent of the monthly SSI check from SSI recipients. That means
it can reduce a $650 monthly SSI payment by no more than $65. There is
no limit on how much SSA may collect each month from someone who receives
only DIB. In either case, contact your local office. Even if you receive
only DIB, you may be able to negotiate a reduced monthly payment rate.
Q: When should I file for reconsideration or a waiver?
A: You should file as soon as you receive notice of the overpayment.
If you file the request within 30 days of the notice, SSA will not attempt
to collect the debt until you have had a hearing on the issue. Also, any
time you file a waiver, SSA should stop its current collection effort until
you receive a decision on the waiver request.