Finding a penny on the ground is lucky. You can’t say the same about receiving more than your usual monthly Social Security Disability Insurance (SSDI) payment. Beneficiaries may feel reluctant to report overpayments, especially if they struggle financially or fear consequences. But knowingly keeping the extra benefits can bring more trouble than what it’s worth.
Others may not know that they’re already getting overpaid. SSDI payout calculations may seem complex and an issue that the Social Security Administration (SSA) can resolve on its own. Not paying back the excess can put your future benefits at risk, regardless of how informed you are about SSDI.
Why overpayments happen
You may have received overpayment for several reasons, some of which aren’t necessarily your fault. These include:
- Inaccuracies in your income report
- Improperly logged information
- Having more resources than allowed by the program
- Continued receipt of SSDI benefits when your disability ends
No matter if your actions caused the overpayment, the government will ask you to repay it.
What to do after receiving a notice of overpayment
If you didn’t know about or notice the overpayment, you’ll want to act quickly once the SSA informs you by sending you a notice of overpayment. Once you receive it, you have two options before the SSA collects it:
- Pay back the overpaid amount within 30 days
- Successfully dispute the notice
The SSA can withhold 10% of your monthly benefit payments until they recover the amount. This can also affect your federal tax refund, employment check and credit.
To dispute or negotiate?
If you don’t agree with the notice of overpayment, you can either:
- Submit an appeal within 60 days
- File a waiver that explains why you shouldn’t have to pay the amount back
Both require you to show the SSA proof of your income and expenses. If the overpayment notice is valid, you can explore:
- Negotiating a repayment plan
- Requesting a lower monthly withheld amount
For many beneficiaries, reduced SSDI payments can significantly affect their financial stability. It can be challenging for beneficiaries to repay overpayments on time. This is especially true for those with severe disabilities or limited mobility. Consulting an experienced Social Security disability attorney can help protect your benefits and disability rights.