Have you received an overpayment notice from Social Security? This expert explains how to pay your balance

If Uncle Sam accidentally overpaid you for Social Security and didn’t say anything about it for a year, a month, or even just a week, it would be understandable if you wanted to take that money and run – but the risk in is it worth it? ?

These situations can arise for a variety of reasons, from agency errors to beneficiary fraud. In fact, the Social Security Administration’s (SSA) Office of Inspector General estimated that it made $72 billion in improper payments between 2015 and 2022, most of which were due to overpayments.

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However, according to at least one financial expert, there is a simple measure that can make things right for recipients who discover they have been overpaid.

In an interview with The US Sun, Social Security Advisors CEO Matthew Allen said it is possible for retirees to get an overpayment waiver. “People need to know that if there is a small overpayment, there is often a way to have it waived as long as the correct procedure is followed,” he told the outlet.

Here are the steps Allen recommends — and why overpaying is such a widespread problem.

How bad is the situation?

So how does this keep happening? A combination of misreporting of information and insufficient controls in automated and manual processes accounts for the majority of overpayments, the SSA reported.

However, the real figure could be much higher than initially announced. In October, the Sun interviewed former government attorney Avram Sacks, who claimed that SSA recipients were overpaid to the tune of $9 billion a year. He would know: he has already tried to help the SSA recover billions of dollars.

Acting Social Security Commissioner Kilolo Kijakazi told Congress in mid-October that the agency sent overpayment notices to 1.03 million people in fiscal year 2022 and 987 000 people in 2023.

“We hold ourselves accountable,” she reportedly said, although when told that many overpayment recipients were low-income and/or living with disabilities, she maintained that her employees “work diligently to pay the right person the right amount at the right time. the right time.”

Learn more: Economists weigh in on Donald Trump’s speech to eliminate Social Security taxes for seniors: Here’s how to boost your retirement fund now

What to do if you receive an overpayment notice

Stories abound of seniors caught off guard by the SSA. One situation involved Maryland senior Everlon Moulton, who called out the SSA in April for having his monthly retirement benefits reduced by $233 — all because of a decades-old error on his deceased brother’s account.

Moulton’s unfortunate experience is not unusual. The SSA sends overpayment notices to about a million Americans each year — and according to KFF Health News, the agency has admitted in the past that many overpayments were the result of government errors rather than the population – often elderly, poor or disabled. .

So, if you receive an official notice, there is no need to treat it with the same trepidation as an IRS audit, because your routes to relief are simpler and do not involve an appointment. you with an agency.

Allen told the US Sun that under give up, you may recognize that the SSA claim is correct, but that you do not have the funds to reimburse the government. You can start the process via Form SSA-632BK.

Allen also suggested that overpaid recipients may fight an SSA “clawback” by request a review. In this case, you may request a direct appeal because you believe the agency is wrong in its request for an assessment. To do this, you can file Form SSA-561.

If you fear retaliation, keep in mind that federal law guarantees your right to pursue one or both paths to overpayment relief. That said, it’s important to follow the correct process.

Although visions of voicemail hell and wait-time purgatory may be unavoidable, the agency encourages people to contact their office at 1-800-772-1213. Be sure to inform the representative that you wish to waive reimbursement for overpaid benefits or have them reconsidered.

In March, the SSA announced measures to ease overpayment issues for beneficiaries, including extending repayment plans, removing the burden of proof of fault, and making it easier to request a waiver.

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This article provides information only and should not be considered advice. It is provided without warranty of any kind.