Have you recently received more Social Security benefits than you normally receive each month? If so, you may not have to pay back that extra money due to some new rules the Social Security Administration has set regarding overpayments. In March, SSA Secretary Martin O’Malley announced the following policy: 4 step plan This is to support recipients who are receiving overpayments without knowing that their benefits have not actually increased.
Typically, if a Social Security recipient receives more than they should have received, even if it was an SSA mistake, they must either reduce their monthly payments or pay it all back in full. These repayments can negatively impact people who rely on monthly Social Security payments to cover housing and other expenses.
We’ll explain what happens with Social Security overpayments and how it affects you. For more information, see the Social Security payment schedule and information about the maximum amount of Social Security you can receive each month.
How do Social Security overpayments occur?
There are several possible reasons why overpayments may occur. According to the Social Security Administration –For example, if you start a new job and don’t report it in a timely manner, or if you continue to receive payments during an appeal.
The SSA says it handles overpayments on a case-by-case basis, so if you receive a notice, it’s best to contact the agency, especially if you think it’s a mistake. If an error occurs, you can file a dispute.
How will the new rules change Social Security repayments?
On 20 March 2024, Commissioner O’Malley introduced a four-step plan to change the way claimants who receive overpayments can repay them.
First, starting March 25, the Social Security Administration will no longer recover 100% of Social Security benefits if claimants do not respond to requests for repayment notices. The default withholding amount will be 10%.
Second, claimants will no longer have to provide evidence as to whether they are responsible for causing the overpayment. Instead, if the authority determines that the beneficiary was negligent in receiving the overpayment, the responsibility lies within the authority.
Third, the repayment period will be extended from 36 months to 60 months. This longer repayment period gives beneficiaries more time to pay and reduces the amount taken from their monthly checks.
Finally, the agency will make it easier for beneficiaries to apply for exemptions if they are not at fault or cannot afford to repay the money.
You can request forgiveness for your Social Security overpayments.
How to Request or Dispute Social Security Overpayment Forgiveness
If you believe you are not at fault for the Social Security overpayment you received, you can request a waiver or file a dispute. Here’s how:
Request a waiver:
If you agree that you overpaid, but you don’t think you need to repay it because it’s not your fault or you can’t afford it, you can apply for forgiveness. As long as you can prove it wasn’t your fault or that repaying the money would cause hardship, there is no deadline to request forgiveness.
To request a waiver, you must submit Form SSA-632. Once completed, mail it or drop it off at your home. nearest social security office.
If you believe you were not at fault and your overpayment is $1,000 or less, do not use this form. Instead, call 1-800-772-1213 or your local Social Security office to request a waiver. Requests may be processed by telephone.
File a dispute:
If you don’t believe you were overpaid, or if the amount listed in the notice is correct, you can dispute it. Here’s how:
Please make sure you have the SSA notification and supporting documents before filing.When you’re ready, visit secure.ssa.gov/iApplNMD/start and click Start a disputeClick and follow the onscreen instructions. Please note that from the date of receipt of the first overpayment notice (5 days after the date stated in the notice) he can object within 60 days.
For more information about Social Security, see How to Apply for Benefits. You can also find here how to create a My Social Security account.
