How To Correct Social Security Payment Errors

Receiving your Social Security benefits is vital for your financial stability. So, what do you do when the payment amount seems wrong? The Social Security Administration (SSA) uses complex, automated systems, but mistakes can still happen. With millions of Americans receiving benefits every month, it’s not surprising that errors occasionally occur.

Payment errors generally fall into two categories: underpayments, where you receive less than you’re owed, and overpayments, where you receive more. These issues often happen because of unreported life changes that affect your benefits, such as a shift in your income, a change in marital status, or the death of a family member.

This guide will walk you through the steps to identify and correct both types of payment errors, ensuring you get the full benefits you are entitled to.

What is an Overpayment?

An overpayment happens when the SSA sends you more money than you were supposed to receive. It’s the most common type of payment error. If this happens, the SSA will mail you an official notice.

It’s crucial to read this notice carefully and act quickly. The notice will explain:

• The reason for the overpayment.
• The total amount you were overpaid.
• Your options for repaying the money.
• Your right to appeal the decision or ask for a waiver.

Your Options for Handling an Overpayment

You have three main paths to take after receiving an overpayment notice.

1. File an Appeal

If you disagree with the SSA’s decision and believe you were not overpaid, or that the amount is wrong, you have the right to an appeal. You must file your appeal within 60 days of receiving the notice.

To start, you need to complete and submit Form SSA-561-U2 (Request for Reconsideration). In your appeal, clearly state why you believe the SSA’s decision is incorrect and include any evidence that supports your claim. You can submit this form online or mail it to your local Social Security office.

2. Request a Waiver

What if you agree you were overpaid but don’t think you should have to pay it back? You can request a waiver by filing Form SSA-632-BK (Request for Waiver of Overpayment Recovery).

The SSA may grant a waiver if you can prove two things:

1. The overpayment was not your fault.
2. Repaying the money would cause you significant financial hardship, making it difficult to afford basic needs like food and housing.

There is no firm deadline for filing a waiver request, but it’s best to do so as soon as possible.

3. Arrange a Repayment Plan

If you agree that you were overpaid and can pay it back, but the proposed repayment terms are too high, you can negotiate a more affordable plan. The SSA is often willing to set up a reasonable monthly payment.

To do this, complete Form SSA-634 (Request for Change in Overpayment Recovery Rate). This form asks for details about your income, expenses, and assets, which helps the SSA determine an amount you can afford.

What Happens If You Ignore an Overpayment Notice?

Ignoring an overpayment notice will not make the problem go away. If you don’t respond or make arrangements within 30 days, the SSA has several methods to recover the money.

They can:

• Withhold your entire monthly Social Security benefit.
• Reduce your federal income tax refunds.
• Garnish your wages if you are working.
• Report the debt to credit bureaus, which can damage your credit score.

Always address an overpayment notice promptly to avoid these serious consequences.

What is an Underpayment?

An underpayment occurs when you receive less money from the SSA than you are entitled to. The SSA doesn’t always notify you of underpayments, so it’s important to keep an eye on your payments.

If you suspect you’ve been underpaid, you must contact the SSA. You can call them at their national toll-free number or visit your local office. Be prepared to provide documents that support your claim, such as your benefit award letter, bank statements, and any other relevant records.

Once the SSA confirms the underpayment, they will calculate the back pay owed and typically issue it as a single lump-sum payment.

It is important to know that if you have an outstanding overpayment, the SSA may use a process called “netting.” This means they will subtract the amount you were overpaid from the underpayment amount before sending you the remaining balance. You will receive a notice explaining any netting action.

What should I do if I suspect an error in my Social Security payment?

First, review your benefit award letter and your bank statements to confirm the discrepancy. You can also log into your personal my Social Security account at SSA.gov to check your payment history. If you still believe there’s an error, contact the SSA immediately by phone or by visiting your local office.

How long do I have to appeal an overpayment decision?

You have 60 days from the date you receive the overpayment notice to file a Request for Reconsideration. If you miss this deadline, you may still be able to appeal if you can show you had a good reason for the delay.

What happens if my request for a waiver is denied?

If the SSA denies your waiver request, you have the right to appeal that decision. You would start by filing a Request for Reconsideration (Form SSA-561-U2) to have your case reviewed again by a different person.