An overpayment occurs when the Social Security Administration (SSA) finds that your Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits for a certain month or months were higher than they should have been. This often happens if your income has increased or your expenses have decreased. For example, you may not have told the SSA that you started working, your child moved out of your house, or that your child began getting child support. In some cases, you may have reported the change, but SSA delayed in decreasing your monthly check.

SSA will send you a Notice of Overpayment. The letter will tell you how much you were overpaid. It will tell you to send the money back in 30 days.

There are forms to submit for each of these options. It is best to submit these forms in person, but you can submit the forms to SSA by certified mail with a return receipt request from the post office. To find the nearest SSA office call 1-800-772-1213 or go here to find a location. The forms are also available on the SSA website here.

It is always a good idea to at least talk to a lawyer about your case if possible. You can also see if you are eligible for free legal assistance by applying for help from Legal Aid of West Virginia. Legal Aid advocates can’t go to court with everyone that qualifies for help, but we try to give information and advice to everyone who qualifies. Or you can try these other legal resources.

You should file for a Request for Waiver of Overpayment. You can find the form here.

To get the overpayment waived, you will have to show that (1) the overpayment was not your fault and (2) that paying the money back to SSA would cause a financial hardship or would be against equity and good conscience.

1. Not your fault: Some examples it’s not your fault might include:

• You have trouble reading. You did not know what you had to report to SSA.
• You have trouble remembering or understanding directions.
• You believed you reported every change that might have cause an overpayment.
• You were not told the reporting requirement.
• You applied for SSI a long time ago and do no remember the reporting rules.
• You did comply with the rules, but SSA did nothing.
• You did not know the information you gave was incorrect
• You though the payments you received were correct.

If SSA believes you are without fault, then they look at the second part of your waiver request.

2.  Financial Hardship: This is automatically proven if you receive some sort of public assistance (like SSI). It can also be shown by explaining to Social Security that repaying the overpayment will be a financial hardship on you by putting you into debt or making you unable to pay your ordinary living expenses. If you don’t receive public assistance, you will have to list all of your necessary expenses/bills on the waiver form to show that you can’t afford to pay SSA back. You may be asked to provide proof of the expenses/bills listed on the Waiver.

Against equity and good conscience can be shown by telling SSA that recovering the overpayment from you would be extremely unfair. For example, if you changed your position for the worse or gave up a valuable right because you relied on what SSA told you, then that would be unjust.

SSA will waive overpayments of $50 or less. Where the overpayment is $1000 or less and you file a request for reconsideration or waiver, Social Security will waive any collection of the overpayment (unless you were at fault in creating the overpayment)

If you receive SSI, you are only allowed to have $2000 in the bank or $3000 if you are a disabled couple. You must show receipts or other documentation proving the money has been spent or is no longer available to you for some other reason. (You cannot just give the money to relative to hold for you). Remember to keep a copy of everything you submit to Social Security. In the case of property (for example, like owning a house in another country), you can provide documents showing that property’s value is lower than what Social Security claims.

If you disagree with the waiver decision, the next step of appealing is reconsideration. (However, in some cases, you have a right to a conference at your local SSA office).

If you disagree with the reconsideration decision: You can Request a hearing with an Administrative Law Judge (ALJ). After completing the form submit it in person to the nearest Social Security Office or mail it certified with a return receipt request from the post office.

You can appeal the ALJ’s decision to the Appeal’s Council. After the Appeal’s Council appeals are heard in Federal Court.

Or you can try to set up a payment arrangement with the SSA.

For SSI recipients, SSA will recover the overpayment by taking up to 10% of your SSI each month. If this is a hardship on you, ask to take out less.

If you receive SSD or Disability Insurance, SSA can recover the overpayment amount by taking your entire check for a month or more. That is why you may request a modification due to hardship. For example, ask them to only take 10% or 5% or your check because more than that creates a financial hardship on you.

If you are not currently receiving benefits, overpayments may be taken from future benefits when they become due.

Remember, spending the money after receiving a notice of overpayment will not stop SSA from proceeding against you to recover the amount of the overpayment.

The SSA can make claims against you in civil court. Your IRS tax refunds can be seized. Credit reporting agencies can be notified. Private debt collection agencies may be used to collect the debt (overpayments) from you.

If you have lost all your appeals or have decided not to appeal any further, you must pay the money back. Tell SSA that you want to repay it in small amounts each month that you can afford. Otherwise, SSA may automatically take your whole Social Security disability check or 10% of your SSI check. Usually you will have to pay back at least $10.00 a month. SSA tries to get the money back within 3 years. However, they cannot take more than 10% of your SSI check, even if it takes more than 3 years.

Remember to report changes in your income or living arrangements to SSA in writing, if possible. If you call, make a note of the date and the person you spoke to. Also remember to report any changes which may reduce your expenses (if you are no longer seeing a doctor, for example). If you receive a check for an amount that is different than what you normally receive, call SSA to inform them.