Steps to take when you find yourself in an overpayment
In our last blog we covered how to avoid an overpayment. Now we will show what steps to take if you are in an overpayment.
- Appeal – If you were not actually overpaid, or if the amount is wrong
You should file an appeal called “Reconsideration” if you think Social Security is wrong about the facts. For example:
- Social Security says you got money that you didn’t actually get.
- The amount that Social Security says you were overpaid is wrong.
- Social Security says you were working, but you weren’t.
- Social Security says you got Workers’ Compensation, but you didn’t.
- Social Security says you made more than the Trial Work Period amount or Substantial Gainful Activity amount allows, but you didn’t.
You MUST file a reconsideration appeal within 65 days from the date on the Notice of Overpayment. You can keep getting your SSDI benefits payment while Social Security makes a decision if you file it within 35 days.
To ask for reconsideration, fill out and file Form SSA-561-U2 with Social Security. On the form, explain why you think you were not overpaid.
If Social Security denies your Request for Reconsideration, you can ask for a hearing in front of an Administrative Law Judge (ALJ) by filling out and filing Form HA-501-U5. You must ask for the hearing within 65 days from the date of the reconsideration denial letter.
- Waiver – If you were overpaid, but it was not your fault:
If you think the overpayment is not your fault, you can ask for a waiver. There is no deadline to file a waiver. Once you file a waiver, Social Security should stop taking money out of your SSDI check while they make a decision. You will have to ask them about this—it is not automatic.
IMPORTANT NOTE: You can file both a Request for Reconsideration and a waiver. You still have to file the Request for Reconsideration within 65 days of the date of the notice. If you file for both reconsideration and a waiver at the same time, Social Security will make a decision about the reconsideration appeal before they look at the waiver.
- If the amount of the original overpayment was less than $1,000, you can ask for an Administrative Waiver at a Social Security office without filling out a waiver form. If the office agrees that the overpayment was not your fault, they can waive the overpayment. You should call or go to your local Social Security Office to speak to someone about this.
- If the amount of the overpayment was more than $1,000, fill out and file Form SSA-632-BK with Social Security. On the form, fill out the budget and explain why the overpayment was not your fault. Ask for a waiver of the entire overpayment amount. You should include any documented evidence you have that proves the overpayment is not your fault, especially any documents that show you reported your income on time.
- Payment Plan—If the overpayment was your fault or your waiver was denied:
If you cannot afford for Social Security to take your entire SSDI check every month, you can use Form SSA-634 to show that you can’t afford the payment and ask to set up a payment plan. Providing documented evidence of financial hardship can reduce your monthly payment low enough for you to meet your basic monthly expenses.
We at Mission Possible understand how complicated and overwhelming an overpayment process can be. We are here to help as best we can. Call us with questions or for more information 888-359-2366.
~ Tina
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