Government Seeking Social Security Repayment? Learn How to Settle Your Account Easily

According to The Sun , Concerns are mounting among Social Security recipients about the possibility of unknowingly being overpaid by the government. The issue of overpayments from the Social Security Administration (SSA) has drawn increasing public scrutiny, with experts warning of an internal push within the agency to recover these funds. This clawback of payments can significantly impact vulnerable Americans and their families, who may be required to repay money that has already been spent.

For many recipients, this scenario represents a worst-case nightmare, forcing them to navigate a complicated bureaucratic process to rectify the situation. However, Matthew Allen, a well-known Social Security advisor, is assisting individuals in maximizing their benefits and addressing overpayment issues.

In an interview with The U.S. Sun, Allen noted that many individuals who receive notification of an overpayment from the SSA often opt to enter a repayment plan immediately. However, he emphasizes that there are alternative options available besides simply repaying the amount owed.

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What Leads to Overpayments?

Social Security overpayments can arise for various reasons, including agency errors, beneficiary fraud, or the agency’s failure to accurately record beneficiaries’ earned income. This can lead to benefits being retroactively stopped years later. According to an SSA report released by the Inspector General in August, the agency made nearly $72 billion in improper payments between 2015 and 2022, averaging about $9 billion each year. In a congressional hearing last October, Social Security Acting Commissioner Kilolo Kijakazi revealed that the agency issues over one million overpayment notices annually.

Allen highlighted that the issue of overpayments has garnered “a lot more attention recently due to the egregious nature of it.” He explained that recipients have several options if they find themselves in this situation, such as applying for a waiver of the overpayment or requesting reconsideration.

With a waiver, the recipient can acknowledge the SSA’s claim of overpayment and explain their inability to repay the funds. In a reconsideration request, the recipient contests the SSA’s claim, seeking an appeal. “We assist people with both aspects of this process, and within each category, there are strategies to address the situation,” Allen said.

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In some instances, recipients may have the opportunity to have their entire overpayment waived. For cases with partial responsibility, there may still be a chance to reduce the owed amount. “One of the biggest misconceptions is that recipients cannot settle their debts,” Allen stated.

He noted that if the balance is under $20,000, the SSA is often obliged to accept an offer in compromise. However, with larger balances, the SSA may be more reluctant to settle, as more money is involved. “It’s important for people to know that if they face a small overpayment, there’s often a way to have it waived, provided the correct process is followed. Collecting small balances is typically not worth the SSA’s time,” Allen added.