Receiving a notice in the mail that you owe money is not something anyone looks forward to and this includes when Social Security informs a Social Security disability beneficiary that they received too much money and now are required to pay back an overpayment.
Many times, a claimant receives an overpayment notice because of no fault of their own. Social Security makes mistakes, and this can include benefit amounts. Social Security takes many things into account when calculating payments and sometimes sends a beneficiary too much money they are not entitled to. So, what do you do when Social Security notifies a beneficiary they were overpaid, and Social Security wants its money back?
Each person’s situation is different, but there are steps a beneficiary can take to combat an overpayment. If a beneficiary can’t afford to return the overpayment the beneficiary can ask Social Security to waive the overpayment. If Social Security agrees the beneficiary will not have to return the overpayment. There are other options as well. A beneficiary can ask Social Security to reduce the amount of the overpayment to make it more affordable. Another option is to appeal the overpayment notice if a beneficiary believes the overpayment is a mistake.
When a beneficiary receives notice of an overpayment the agency will typically ask the beneficiary to return the overpaid funds within 30 days. A beneficiary should not delay in acting on an overpayment matter.
