AS Social Security overpayments roll in, more and more Americans face troubling financial dilemmas.
Without the monthly payments they rely on, some beneficiaries are subjected to homelessness.
One parent said she had to move into a hotel after the Social Security Administration, SSA, took away her $1,700 disability check.
“I was using that money to actually pay for the apartment that we were living in,” she told WSB-TV, an affiliate of ABC in Atlanta, Georgia.
The SSA sent the legally blind mother an overpayment notice and took away her monthly benefits.
This left her unable to afford rent on her apartment.
Another woman said she had to sleep in her car and jammed all her belongings into the backseat after the SSA demanded $57,968.60.
The agency said they would withhold her monthly check of $2,048 until February 2026.
The woman could only work part-time due to her health condition.
The SSA did not immediately respond to The U.S. Sun’s request for comment.
A mistaken overpayment can be the difference between affording rent, having electricity or heating in your home, or buying groceries when your benefits are later cut to make up the difference,
Ron Wyden
REPAYMENT BURDEN
The SSA recovers overpayments if they have incomplete information and can’t accurately calculate a Social Security recipient’s benefits.
This could lead to a reduction or complete halt of the person’s monthly benefits.
The SSA could also garnish wages and federal tax refunds, often leaving beneficiaries stuck with a bill they cannot afford.
If they get a letter saying they were overpaid, the SSA gives beneficiaries 30 days plus five mail days to repay the full amount.
After that, the SSA will begin collecting the overpayment by reducing monthly benefits or Supplemental Security Income.
The SSA is working to implement initiatives to make it easier for people to address their overpayment issues.
If an overpaid beneficiary doesn’t respond to a repayment demand in time, there will be a 10% cap on withholdings.
Filing Waiver Form SSA-632
Those who cannot afford to pay back the overpayment amounts noted by the SSA or feel they should not have to can file a specific form.
- The form is identified as SSA-632 on the SSA website and can be filled out and submitted at a local office.
- “If you agree that you have been overpaid, but you feel
- you should not have to pay it back because you did not cause the overpayment and you cannot afford to repay it, you should file Form SSA-632,” the SSA notes on its website.
- It also lists multiple repayment options.
- Recipients with additional questions are urged to call 1-800-772-1213.
Social Security Commissioner Martin O’Malley said the SSA will make it easier for overpaid beneficiaries to request repayment waivers according to Moneywise.
“A mistaken overpayment can be the difference between affording rent, having electricity or heating in your home, or buying groceries when your benefits are later cut to make up the difference,” said Senate Finance Committee Chair Ron Wyden.
MORE SOCIAL SECURITY
One woman said she was broke after paying $2,400 and an additional $4,111 to Social Security.
She shared her stressful payment issue on Facebook and said the SSA needed to be “revamped” with more competent staff.
The woman retired from her school crossing guard job in 2022 and filed the necessary paperwork to collect Social Security payments.
She filled out a waiver hoping the debt would be cleared, but her request was denied.
The U.S. Sun has more stories on Social Security dilemmas.
One woman panicked when she didn’t have the money to pay $10,000 from a five-year overpayment.
Read April’s payment schedule for COLA Social Security checks.