What is a Social Security Overpayment?
The Social Security Administration (SSA) needs to process needs to process a very large number of payments ranging from retirement benefits to disability benefits. Mistakes and overpayments are fairly common since social security laws are so complex and there is such a large volume of payments issued. Most Social Security overpayments happen because individuals lose their eligibility for disability or other benefits when they are well enough to return to work, but they continue to receive checks from the Social Security Administration.
In most of these cases, these individuals are not aware that they are receiving Social Security overpayments. Most individuals notify the Social Security Administration when they go through a change that impacts their benefits, like returning to work, but if the payments continue, they believe that they are still eligible to receive the Social Security benefits. That’s why many people are unprepared when they receive a letter from the Social Security Administration demanding repayment of the Social Security overpayments, since the amount can often be substantial.
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