Have you received a letter from Social Security saying something like – “Oops! We paid you your disability benefit check when we shouldn’t have over the last several months and now you need to pay it back and, in many cases, totaling thousands of dollars!” Well, you are not alone and we are going to show this can happen. Just to give an idea of the scope of what Social Security handles on an annual basis, in 2019 SSI paid out $56.5 billion dollars and part of that amount ends up in overpayments that generate a letter to the overpaid beneficiary with the full amount and 30-day due date. Do not become one of the overpayment numbers by educating yourself.
In this blog let’s explore what causes disability benefits overpayments and what you can do to keep them from happening.
What causes a disability overpayment?
An overpayment occurs when Social Security (SSA) has paid you more than you should have been paid in accordance with the rules of your benefits, and those the rules vary depending upon the type of benefits you are receiving. These are a few circumstances that would cause a disability overpayment:
- SSDI – Those receiving SSDI benefits when you continue receiving your benefits check after 9 months Trial Work Period and 3 months Grace Period, and your wage earnings are at or above Substantial Gainful Activity ($1,350 in 2022.) Therefore, you must always report your earnings to SSA by sending paystubs to your local SSA office or reporting on your mySSA online account. If SSA pays you when you are not eligible, that will become an overpayment and you will owe them money.
- SSI – When your living situation changes from living alone to having a roommate or moving and changing addresses.
- SSI – When your marital status changes.
- SSI – When you have more resources than the allowable limit (no more than $2,000 for an individual, $3,000 for a couple.
- SSDI or SSI – When you are no longer considered disabled under SSA rules but continue to receive benefits.
- SSDI or SSI – When you do not report a change of address, new roommate, marital status, or (SSI) a grown child moving out to your local SSA office (on time or at all) as required.
- SSDI or SSI – When SSA incorrectly estimates your benefits because of incorrect or incomplete information, most times due to not reporting your income wages to SSA monthly.
What can you do to keep overpayments from happening?
The best way to avoid an overpayment is:
- Keep complete records about your income and any other disability payments you may get and tell Social Security about any changes to your situation.
- If you go back to work, keep careful records of your earnings each month. Keep your paystubs in a file so you can access them when SSA asks for proof of earnings and work history. Also REPORT your earnings regularly to SSA so you don’t end up with an overpayment. Do not rely on Social Security to let you know that you have used up your Trial Work Period months.
- Let Social Security know right away about
- changes to your address,
- money you earn from working, and
- any other disability payments you get (such as Workers’ Compensation).
The rule is that you have to tell Social Security about any changes this month by the 10th of next month. Here is how to tell Social Security about these changes:
- Write a letter to your local Social Security office and tell them about any changes to your situation that could affect your SSDI. Sign and date the letter. Make a copy of the letter and keep the copy for yourself. This includes changes to your
- income,
- address, or
- any other disability payment you receive.
- Make copies of the proof you have (pay stubs, any checks you got, or something showing your new address) and include it with the letter.
- Send the original letter by certified mail with a return receipt requested. You must do this at the post office window. Keep the receipt from the post office. Or fax to your local Social Security office (time & date stamped)
- Keep the return receipt, which is the signed post card that comes back to you in the mail showing that Social Security got your letter, or fax time & date stamped received.
That pretty much sums up what disability benefits overpayments are and what you can do to keep them from happening. In my next blog we will show what steps you can take when you find yourself in an overpayment.
We at Mission Possible understand how scary and overwhelming receiving letters from SSA can be. We are here to help as best we can. Call us with questions or for more information 888-359-2366.
More soon,
Tina
Resource links used for this blog:
https://www.ssa.gov/overpayments/?tl=1%2C5
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