Social Security Payments Being Seized? Explore Your Options for Protecting Your Benefits
The Social Security Administration (SSA) may occasionally overpay individuals, and unexpected extra money in a bank account might be an unintentional Social Security payment. If this happens, it's essential to understand the steps you can take to avoid or lower the overpayment recovery rate.
Addressing the Overpayment Issue Promptly
If you receive a notice from the SSA about an overpayment, it's best to act promptly. Ignoring the notice could lead to the SSA automatically withholding benefits at a default rate of up to 50%, starting from April 25, 2025, due to a change in the overpayment recovery rate by President Donald Trump.
Requesting a Waiver
If you believe the overpayment was not your fault and repayment would cause financial strain, you can fill out the Request for Waiver of Overpayment Recovery form (SSA-632). This form allows you to request that the SSA waives the overpayment recovery.
Requesting a Reconsideration or Appeal
If you believe the overpayment notice is incorrect or the amount is wrong, you can file Form SSA-561 (Request for Reconsideration) within about 60 to 90 days of receiving the notice. This form allows you to appeal the decision and explain your reasons for believing the overpayment was not accurate.
Negotiating a Reduced Recovery Rate or Repayment Plan
The SSA’s default recovery rate can be as high as 50% of your monthly benefits. However, you may request a lower withholding rate by filling out Form SSA-634 (Request for Change in Overpayment Recovery Rate) or by contacting the SSA directly. By doing so, you can negotiate a repayment plan that works best for you and the SSA.
Seeking Further Assistance
The SSA encourages you to contact it if you have any questions regarding the overpayment recovery process. You can contact the SSA at 1-800-772-1213 or manage your claim through your online Social Security account for these requests.
Remember, overpayments often happen because beneficiaries fail to report important changes like income or marital status, but sometimes SSA makes errors, so appealing or seeking a waiver can be effective in some cases. If you no longer receive benefits, SSA may recover overpayments via tax refund offsets or wage garnishments.
If you are affected, acting quickly by appealing, requesting waivers, or negotiating repayment is essential to minimize financial hardship.
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