Social Security Benefits Reduction Imminent for Certain Recipients in Upcoming Month
Pared-Down advice for Social Security overpayment troubles
Summers ahead could leave some Social Security recipients high and dry as the administration recovers overpaid funds.
The Social Security Administration (SSA) has announced that it will withhold 50% of benefit payments from overpaid individuals. Originally, the agency planned to withhold 100% of benefit checks, but changed course in April.
Overpayments arise when beneficiaries provide incorrect financial information or the SSA makes calculation errors. Between 2015 and 2022, the SSA doled out approximately $72 billion in improper payments, most of which were overpayments, according to reports from the Office of the Inspector General.
Beneficiaries will have received a written notice and a notice on their record if they've been overpaid. They then have a 90-day window to request a lesser withholding rate, seek reconsideration, or petition for a waiver. For many, this deadline arrives in July.
If individuals fail to act, the agency will initiate withholding up to 50% of their benefits at the end of the 90-day period and won't relent until the overpayment is fully recuperated.
Seek Balance If you believe you've been unfairly overpaid and face financial hardship, consider filing a waiver using Form SSA-632-BK. Outline why the overpayment transpired, why you deserve a waiver, and the form will cover the entire overpayment or just the remaining balance. Beneficiaries of Supplemental Security Income (SSI) or Social Security benefits can contact the SSA at 1-800-772-1213 or visit a local office to expedite the process.
If you disagree with the SSA's determination of an overpayment, file a Request for Reconsideration using Form SSA-561. Clearly state your reasons for dissent.
Remember, deadlines are crucial: You have 90 days from the date on the overpayment notice to take action, so don't let the opportunity pass you by!
- In light of the Social Security Administration's plan to withhold 50% of benefit payments from overpaid individuals, beneficiaries might consider using Form SSA-632-BK, a token for seeking a waiver, if they believe they've been unfairly overpaid and face financial hardship.
- If overpaid beneficiaries disagree with the Social Security Administration's determination of an overpayment, they can file a Request for Reconsideration using Form SSA-561, an ico in the finance business, to express their reasons for dissent and potentially avoid the withholding of their benefits.
