All of this sounds complicated. We can simplify it just by saying that if you file a claim and you are told that you have too much income or resources or if you are told that you have not worked enough, you just need to…
Overpayments the Social Security Administration Wants Back
There are several reasons why you might owe the Social Security Administration money. This happens when it is determined that at some point in the past you received money from the Social Security Administration that you were not rightfully due. Sometimes this is the case when you have received disability benefits in the past, and it was later determined that you were working while you were receiving disability benefits. This is why it is always so important to report your earnings to the SSA. If you are working while receiving disability benefits, then you need to go through the SSA’s Ticket to Work program. This program has strict requirements that you need to carefully follow if you want to work while receiving disability benefits.
If you are awarded disability benefits on your current application and your claim is awarded, then you will be required to pay back your overpayment out of your monthly disability checks. You can opt to pay the total amount, or in many cases the SSA will agree to reduce your monthly checks by a set percentage until your overpayment is paid back. It is typical for instance that an SSI check will be reduced by 10%.
If you dispute that you owe an overpayment or you disagree with the amount that you owe, then you need to file a form SSA-561 to appeal the overpayment determination within 60 days of the date you received your overpayment notice. You can also request a waiver from repayment of an overpayment if you feel you should not be required to pay back the money that you owe. Form SSA-632 is an application for a waiver from repayment of an overpayment. You would file for a waiver if you do not dispute that you owe money or the amount that you owe. You must show that the overpayment was not be your fault and you have financial hardship or unfairness in repayment. SSA will schedule a meeting with you and suspends collection of the overpayment until a decision or an appeal.