Millions of Americans rely on their Social Security benefits to cover essential living expenses, but some beneficiaries are receiving unexpected notices demanding they repay thousands of dollars in alleged overpayments. One recent case was reported by CBS News this week involving a woman who received notice from the Social Security Administration (SSA) that she owed approximately $35,000 because the agency said she had been overpaid over a four-year period. After giving her 30 days to repay the amount, the SSA warned it could withhold 50 percent of her monthly benefits to recover the debt.
Nationally, massive overpayments like this are not common, but the SSA said last year it sent roughly 2 million overpayment notices each year across its benefit programs. The agency also previously said it issued about $32.8 billion in OASDI and SSI overpayments between fiscal years 2020 and 2023, including nearly $8.9 billion in 2023 alone. So what should you do if you find yourself in this situation?
Experts say the most important thing is to act quickly and request more information. Waivers and appeals are possible. While most errors are nowhere near a very high amount, a relatively small monthly mistake can become a massive debt when SSA fails to identify it for several years,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
Social Security's overpayments affect millions of beneficiaries every year. Approximately 2 million overpayment notices are sent to Americans each year across its benefit programs. These overpayments can result from reporting issues or delays in processing information.
Other times, income or marital status changes are to blame, and several cases result from sheer administrative errors. Despite this, beneficiaries can still be required to repay the money even if they were not responsible for the mistake. Many recipients depend on Social Security for the majority of their income.
Losing a significant portion of a monthly check can create financial hardship for retirees and disabled workers who have little ability to replace lost income. Overpayments happen when beneficiaries receive more money than they were entitled to receive. The agency says overpayments can happen because of missing or wrong information, including changes that affect benefit calculations.
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