Social Security may overpay your disability. It catches overpayments on audit and collects a reimbursement from you. If you qualify for Social Security disability and receive a payment that seems like too much money, it may be. Set aside any amount you believe is overpayment so you will be ready to return it when Social Security asks. Social Security requires repayment, and the federal government is not a polite creditor when seeking the return of overpayments.
If you receive a notice from Social Security that it has overpaid your Social Security disability or your Supplemental Security Income disability benefits, check to see if you agree with the notification and the amount. If you do not agree, you may file SSA-561 to appeal the overpayment amount. You must file this appeal form within 60 days of the notice sent you that you owe repayment.
Form SSA-632 is an application for a waiver from repayment of an overpayment. You may file a waiver request at any time, asserting that you should not have to pay the money back. The overpayment must not be your fault, and you must prove financial hardship or unfairness in repayment. Social Security will ask you for financial information, including income and expenses. Social Security schedules a meeting to respond to your waiver request and suspends collection of the overpayment until a decision or an appeal.
If you agree that you were overpaid and you are receiving Social Security disability, Social Security withholds the full amount from your monthly check until it receives repayment in full. You may request a lesser amount withheld, but Social Security must approve it. Repayment starts 30 days after you receive notice of overpayment unless you file an appeal or file a waiver. Alternatively, you may pay the full amount within 30 days of the notice and avoid disruption of your check.
If your disability payments are Supplemental Security Income, Social Security withholds 10 percent of your check each month until repayment is completed. SSI deductions start 60 days from the date you receive notification of overpayment. If you are no longer receiving SSI or Social Security disability, you may write Social Security a check for the full amount or set up installment payments to repay. If you do not repay the overpayment, the IRS will withhold the amount from any federal tax refund or Social Security will withhold the funds from your wages, your future Social Security or SSI payments. Social Security reports your delinquency to the credit bureau.
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