A Social Security disability overpayment occurs when the Social Security Administration (SSA) determines that you’ve received more Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits than you were entitled to receive. When the SSA discovers the overpayment, it sends a notice detailing the amount overpaid. You can contest an overpayment by asking for reconsideration or a waiver. Ignoring an overpayment notice could result in a reduction in long-term disability benefits and aggressive collection methods, such as tax refund interception and wage garnishment.

If you need help with disability benefits in Chicago, call Ankin Law Social Security disability lawyers at 872-529-9377.

Why Social Security Disability Overpayments Happen

A Social Security disability overpayment can happen for a variety of reasons, which could be the fault of the SSA or the beneficiary. Common reasons include:

  • Miscalculation of benefits by the SSA
  • Continued receipt of benefits after the disability ends
  • Earnings exceeding the Substantial Gainful Activity (SGA) level
  • The value of assets or resources has increased
  • Unreported changes in your marital status or household composition
  • Delays by the SSA in processing or applying the reported changes

Reconsideration vs Waiver: Two Ways to Challenge an Overpayment

When the SSA begins collecting an overpayment, it can reduce how much disability pays you. If the overpayment decision was incorrect, you can request a reconsideration. On the other hand, if the overpayment wasn’t your fault and you can’t afford to repay the money, you can apply for a waiver.

Reconsideration

You can file a Request for Reconsideration if you don’t believe you were overpaid or think the overpayment amount is wrong. It’s the first level of review in the SSA overpayment appeal process. You can file the appeal online or at a local Social Security office. There are 47 SSA office locations in Illinois, with more than 20 being in the Chicago area. You can also mail the appeal.

You should file your request within 60 days of receiving the overpayment notice. If the reconsideration is unsuccessful, you can request a hearing before an Administrative Law Judge.

Waive r

A waiver requests the SSA to excuse your Social Security disability overpayment, even though you were overpaid. When you’re given a waiver, the SSA won’t ask you to give back the money you owe. A waiver is usually granted if you’re not at fault for the overpayment and repaying the overpayment would cause financial hardship or be unfair given your situation.

You can fax or mail your request to your local SSA office. There’s no deadline for requesting a waiver. However, it’s best to file the waiver request as soon as possible, since the SSA won’t try to recover the overpayment before reviewing your case if you file the request within 30 days of receiving an overpayment notice.

You can file a reconsideration and waiver request at the same time after getting an overpayment notice. If you exhaust all your options and Social Security determines the overpayment decision is justified, you can negotiate a more sensible repayment arrangement with the agency.

What the SSA Doesn’t Clearly Explain About Repayment Rights

The SSA may not adequately explain key aspects of the options that apply to your case, which one to pursue, or how to proceed.

What Applies Best to Your Situation

The SSA doesn’t clarify the option that’s most effective for your problem. Due to difficulty discerning whether an overpayment is their fault or a mistake, beneficiaries may find it challenging to determine the appropriate paperwork to complete. Small overpayments of $2,000 or less may qualify for faster waiver processing by phone. The SSA doesn’t always fully and clearly explain how to proceed to contest its determination. Most beneficiaries find the SSA overpayment appeal and waiver processes onerous, thereby failing to benefit from them.

For example, only a small percentage of eligible beneficiaries successfully complete the process for receiving waivers. In FY 2024, SSA collected $4.9 billion in overpayments and had approximately $10.3 billion scheduled for repayment. However, the agency waived only $302 million.

Notices may also not clarify how recent policy changes apply to your case.

Detailed Breakdown of Calculations

The SSA often implies in its notices that it’s the beneficiary who caused the overpayment despite computation errors, such as misapplied trial work periods and counting of exempt resources, being reportedly common. Notices often lack a clear step-by-step breakdown of the overpayment amount, including dates of changes and how these changes affected your benefits. Consequently, many people who get SSDI benefits or SSI fail to realize when the SSA makes an error and to exercise their right to challenge the agency’s calculations and records.

Nuances of Fault and Financial Hardship

Getting a waiver requires you to prove the overpayment wasn’t your fault and would cause financial hardship. The SSA doesn’t clearly explain fault and financial hardship.

Fault is based on reasonableness rather than perfection. For example, not reasonably having known you weren’t entitled to payments, lack of understanding of the requirement to report changes, timely reporting attempts, and reliance on incomplete or incorrect information given by the SSA may meet the not at fault requirement. Unclear correspondence leads recipients to assume they’re at fault for an overpayment even when they’re not.

While the inability to meet living expenses would be considered financial hardship, thresholds for what counts as living expenses for disability beneficiaries are vague. The SSA doesn’t explain how broad and flexible the definition of financial hardship is. Proving hardship varies depending on your situation. You don’t have to be impoverished to prove repayment would cause financial hardship. Supporting family members and having debt obligations or medical costs could constitute hardship.

Right to Legal Assistance

Navigating repayment rights and responsibilities can be less challenging when you understand these nuances. A disability benefits lawyer can provide invaluable support and guidance, helping you navigate your overpayment situation more effectively. A lawyer can review your notice for discrepancies and calculation mistakes and advise you on the best course of action. He or she can challenge SSA’s determinations, craft strong, compelling appeal or waiver requests, submit persuasive evidence, and file all paperwork on time. Your Social Security attorney can negotiate with authorities and represent you in hearings.

Contact Ankin Law to schedule a free consultation with one of our Chicago disability lawyers regarding your overpayment notice or any other Social Security disability concerns.

Frequently Asked Questions

What Causes a Social Security Disability Overpayment?

A Social Security disability overpayment can be caused by processing delays and errors in calculation by the SSA and changes in your ability to work, income, marital status, or living situation.

What Is the Difference Between a Reconsideration and a Waiver?

A reconsideration is an appeal requesting the review of an overpayment you believe is incorrect, whereas a waiver is a request to avoid repaying an overpayment because you’re not at fault and can’t afford to pay the money back.

Can a Disability Benefits Lawyer Help Stop or Reduce Repayment?

A disability benefits lawyer can help you stop or reduce repayment of a disability overpayment by helping you file an appeal, request a waiver, or negotiate a lower, manageable repayment plan.