Social Security Overpayments_ What You Need to Kno

Money Explainers

Received an overpayment notice? Learn why it's happening, what the "clawback" means for your benefits, and how to respond. Benefits cut in half? The Social Security Administration is recovering $72 billion in overpayments. Find out if you're affected and what steps to take.Don't ignore that letter! Understand your rights and options if the SSA claims you've been overpaid. Acting quickly is key. #ProtectYourBenefits #SSAUpdates#SocialSecurityOverpayments

Transcript

00:00Have you received a letter from Social Security recently about an overpayment?

00:04You're not alone.

00:05The Social Security Administration is currently working to recoup nearly $72 billion

00:10in improper payments made between 2015 and 2022.

00:15Overpayments often occur due to unreported changes in income,

00:19marital status, or disability, or sometimes simply agency error.

00:23Regardless of the cause, the SSA is legally obligated to recover these funds.

00:28What does this mean for you?

00:30If you've been overpaid, the government can now withhold up to 50% of your future monthly benefits

00:35until the full amount is repaid.

00:38While the Biden administration previously reduced the default withholding rate to 10%,

00:43it's now set at 50%.

00:45The SSA began issuing notices on April 25th,

00:49warning that if you don't respond within 90 days, your benefits could be automatically cut.

00:54While that 90-day window technically closes on July 24th,

00:58the actual start date for reductions varies as each notice has its own designated start date.

01:04Some beneficiaries could see cuts as early as August.

01:07So, what should you do if you receive an overpayment notice?

01:11Act quickly.

01:12You have options.

01:13If you believe the notice is incorrect,

01:15you can file a request for reconsideration to appeal the decision.

01:19Alternatively, you can request a waiver.

01:21Asking the SSA to forgive the debt if you can prove it was on tier fault

01:26and repayment would cause financial hardship.

01:29Both forms must be submitted in person by mail or FACs.

01:33They cannot be done online.

01:35If the overpayment is accurate but the repayment amount is too high,

01:39you can request a lower withholding rate.

01:42Engaging early with the SSA can help you avoid unexpected reductions and explore repayment plans.

01:47Don't ignore these notices.

01:50Understanding your options is crucial to protecting your benefits.

01:53Money explains.

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