Many Individuals rely on Social Security benefits to make ends meet; but, what happens if the Social Security Administration requests repayment?
Getting such a notification might be frightening, especially if you’ve already spent the monies involved. Here’s a closer look at why this could happen and what you can do if it does.
Why The Social Security Administration May Request Money?
If the SSA believes that it has overpaid your benefits, it may want the money back.
According to Krisstin Petersmarck, Retirement Income Certified Professional (RICP) and investment advisor representative at Bridegriver Advisors in Bloomfield Hills, Michigan, these are the reasons for failing to file report certain income and calculating benefit amounts incorrectly due to inaccurate information.
Another common reason, according to Martha Shedden, president and co-founder of the National Association of Registered Social Security Analysts, is that you are receiving a “non-covered” pension — from an employer that did not contribute payroll FICA taxes — while also receiving benefits from work at another employer(s).
Read more: IRS: Top 3 Social Security takes from your benefits
What To Do With Overpayment Warning?
If you receive notification that you owe the SSA money and are unsure why the first step is to determine why you are being requested to repay it.
If you believe there was an error, you can send a letter saying that the SSA made an inaccurate assessment and requesting reconsideration or an appeal.
Don’t be alarmed if your appeal is denied or if you don’t believe an error occurred. Dickinson observes that there is generally a solution to which all parties may agree. If you actually cannot afford to reimburse the SSA, you may not be required to do so.
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