Have you gotten an SSI Notice of Overpayment because you had too much money in your bank account?
If Social Security says that you were overpaid because your resources were more than a person could own and still get SSI, and you live in Maine you may want to contact us. Your bank account is one of your resources. But, the SSI benefits you get for a particular month should not count as a resource in that month. Social Security has sometimes been counting SSI benefits as a resource right away when they are directly deposited into a bank account. This is because of the way some banks report account information to Social Security. If you think that this has been a problem for you, and you live in Maine, you should contact us. If you do not live in Maine, contact your local legal aid organization.
What is an SSI Overpayment?
SSI benefits are the benefits from the Social Security Administration (SSA) that come on the 1st of the month. If SSA finds that you have gotten too much money in your SSI benefit, they will send you a Notice of Overpayment. This may happen because you did not report a change to SSA. For example, you may not have told SSA that you started working or that your household situation changed. Sometimes overpayments happen because income like child support or wages can change every month. In some cases, you may have reported the change, but SSA delayed in decreasing your monthly benefit.
What Can I Do if I am Overpaid?
The Notice of Overpayment will tell you how much you were overpaid. It will tell you to send the money back in 30 days.
Don't panic! The first thing to do is read the Notice carefully.
- Is the information on it correct?
- Are the amounts and dates correct?
Try to figure out if you were really overpaid the amount SSA says.
After you have figured out what the Notice says, there are several different ways to deal with it. You can do any one of these things (or more than one at the same time). Here are your choices:
- Ask for Reconsideration. This is an appeal. It means you want SSA to look at your case again, either by looking at your file or by meeting with you in a conference or hearing. Ask for a reconsideration if you think the amount of the overpayment is wrong or that the reason SSA gave for the overpayment is wrong.
- Ask for a Waiver. If you think you may have been overpaid, you can ask SSA to waive it so that you don't have to pay it back. Ask for a waiver if you think that the overpayment was not your fault and you can't afford to pay the money back.
- Ask for a Payment Arrangement. Do this if you think that the overpayment was your fault or if you can afford to pay it back. You can tell SSA that you want to pay the money back a little at a time. That amount would be based on how much of your income you need for your basic necessities.
Whatever you decide to do, act quickly! If you ignore the notice, SSA will start taking money out of your future checks. You have to ask for one of these things within 30 days from the date on the notice to make sure SSA doesn’t take money out of your future checks.
If you do not think you were overpaid, or if you don’t think the amount is right, ask for a reconsideration of the overpayment. Here are the rules:
- Ask for reconsideration in writing at your local Social Security office or by filling out the request for reconsideration form or by completing the form online. Learn more about asking for reconsideration online.
- File your request within 60 days of getting the Notice of Overpayment. If you file your request within 30 days, SSA will not take any of the overpayment out of your benefits until after they reach a decision on your reconsideration.
- You can ask for one of the following types of review:
- Case Review: An SSA worker will review the papers in your file and make a new decision based on this file review.
- Informal Conference: You meet with the person who will decide your case to go over your file, to give new information, and to tell your side of the story.
- Formal Conference: You can bring witnesses to help present your case to the SSA worker. (This review is only used if your SSI has been stopped or lowered for non-medical reasons).
Decide which type of review you want, depending on what additional information SSA needs to have. In most cases, you will probably want an informal conference so you can present your story to the worker who will be reviewing your case.
After reconsideration, if SSA still says that you were overpaid, you can appeal that decision. See Step Three below for the next steps to take. SSA can start to get the overpayment back after the reconsideration, even if you appeal. If you win the appeal, SSA will have to pay you back.
Sometimes an overpayment happens because you did not report a change in your income or household to SSA. Maybe you did not know that you were supposed to report the change. Or maybe you did tell SSA and they didn't record it. If the overpayment was not your fault and you cannot afford to pay it back, you can ask for a waiver. A waiver means that even though you were overpaid, SSA will not ask you to give the money back.
Automatic Waivers for Small Overpayments
SSA must automatically waive your overpayment if:
- The amount is $1000 or less.
- You did not cause the overpayment by making a false statement to SSA, and
- You request waiver
If all 3 of these apply to you and your waiver is denied, remind the SSA worker that you qualify for an automatic waiver. If the waiver is still denied, and you live in Maine, contact Pine Tree Legal right away. If you do not live in Maine, contact your local legal aid organization.
Steps in Applying for a Waiver of Overpayment
Get a form called Overpayment Recovery Request, (you can also ask for one at your local Social Security office). This form asks you questions about whether you reported the change and whether you knew you should report the change. It will also ask questions about your income. Remember, you must show both that the overpayment was not your fault and that you do not have enough money to pay back the overpayment.
Some of the reasons that may show that the overpayment was not your fault are:
- You have trouble reading. You did not know what you had to report to SSA.
- You have trouble remembering or understanding directions.
- You believed you reported every change that might have caused an overpayment.
- You were not told the reporting requirements.
- You applied for SSI a long time ago and do not remember the reporting rules.
Next, if you are not getting SSI now, list all your income and expenses on the part of the form that asks for financial information. If you are getting SSI, you do not need to give financial information. The rules assume that you cannot afford to repay. Just write on that section: "I am currently receiving SSI. It would be a financial hardship for me to pay the money back."
If you need help filling out the form, ask a worker at SSA to help you.
If SSA does not give you a waiver, you can ask for a reconsideration. This means you want SSA to look at your waiver request again. Here are the rules:
- Ask for a reconsideration of your waiver in writing at your local Social Security office.
- File the request within 60 days of being turned down for a waiver. If you file your request within 30 days, SSA will not try to recover the overpayment until after your case is reviewed.
- You have the three choices for the type of review you want: case review, informal conference, or formal conference. (See above.)
If a waiver is still denied, you can ask for an Administrative Hearing. Ask for the hearing in writing within 60 days after your reconsideration was turned down, or by filling out the Request for Hearing by Administrative Law Judge form. This hearing is held by an Administrative Law Judge. At the hearing, you will have a chance to tell the judge your side of the story. You can have an attorney, paralegal or other representative to help you at the hearing. If you live in Maine, contact the Volunteer Lawyer's Project, Pine Tree Legal or a private lawyer or paralegal as soon as you appeal. If you do not live in Maine, contact your local legal aid organization.
Making a Payment Arrangement
If you have lost all of your appeals or have decided not to appeal any further, you must pay the money back. Tell SSA that you want to repay it in small amounts each month that you can afford. Otherwise, SSA may automatically take 10% of your SSI check. Usually you will have to pay back at least $10.00 a month. SSA tries to get the money back within 3 years. However, they cannot take more than 10% of your SSI check, even if it takes more than 3 years.
Don't despair if you get a notice of overpayment from Social Security. Read the notice carefully and ask your SSA worker to help you. Always write down the name of anyone you talk to at SSA and the date of the conversation. If you live in Maine, you can also call Pine Tree Legal Assistance if you have questions. If you do not live in Maine, contact your local legal aid organization.