Do I Have to Repay Benefits Overpayments?

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Did you receive an overpayment notice from the Social Security Administration?

Are you worried about paying the amount on time?

It’s normal to panic, but it is better to calm down and understand the situation. You need to determine why you received the overpayment notice and determine the best course of action.

Consulting a reliable Burbank Social Security benefits lawyer gives you an idea of the best step to take for your unique situation.

What Is Benefit Overpayment?

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Benefit overpayment is when you receive an exceeding amount from the SSA for your Social Security Disability Insurance or Supplemental Security Income. An overpayment happens when the SSA receives false, incomplete, or outdated information about your situation while releasing the money.

An example is when you’ve been receiving disability benefits while you’ve been working full-time despite your injuries.

However, it can also happen even when you report any changes about your situation to the SSA. That’s because of some problems in their operations, like failing to update your information in their system immediately.

What Happens When You Receive an Overpayment Notice

The overpayment notice informs you of the excess amount and that you need to pay it back within 30 days. Although you can fully pay it before the deadline if possible, there are other options to consider too.

1. Make an Appeal to the SSA

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You can appeal if you think the overpaid amount stated in the notice is higher than the actual. This option makes the SSA reconsider your case and correct mistakes on their part.

You only need to fill a Request for Reconsideration form and submit it to the SSA. You can attach documents to prove your point as well. Moreover, remember to file your appeal within 30 days after receiving the notice before the SSA starts collecting money from your check.

You can also bring your case to a court hearing if the SSA denies your appeal. Consult a Burbank Social Security benefits lawyer if you decide to take this course of action.

2. Ask for a Waiver from the SSA

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The next option is to ask for a waiver from the SSA for your overpayment. This choice is perfect if you can’t afford to pay back the overpaid amount. But it’s only applicable if you didn’t report false information to the SSA.

For example, you may be unaware that you must report an income change, and you thus fail to report such information.

Another example is when you reported all information. But then the SSA didn’t encode it to their computers right away. That’s why they end up with the wrong amount while calculating your benefits.

Waiving the overpayment means the SSA won’t make you pay the excess amount anymore. Moreover, remember that the SSA should automatically waive your overpayment when the amount doesn’t exceed $1,000.

You can also talk with an attorney and bring the case to court when the SSA denies your waiver request.

3. Repay the Overpaid Amount

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As mentioned above, you can fully pay the overpaid amount at once. However, if you can’t afford to do so, the best choice is to ask for a payment arrangement with the SSA.

The SSA would want you to repay the entire amount within three years by collecting at least 10% of your monthly check.

However, you can negotiate the amount they will deduct each month if you think 10% is too much. However, this is possible only if your overpayment didn’t result from fraud.

Talk with a Social Security Benefits Attorney in Burbank about Overpayment

It’s natural to feel alarmed when you get a benefit overpayment notice. However, it is better to read the notification or consult a reliable Burbank Social Security benefits lawyer. You can then plan the best action to take for your situation.

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