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Social Security Overpayment: What It Means and What to Do

Quick Answer: Social Security overpayments occur when benefits are paid after eligibility ends, often due to unreported income or work activity. George likely owes $60,000 because he continued receiving disability payments while working, and the $50 monthly payment plan may be reasonable given the large balance.

“Dear Steve,

I was colecting a disibilty check from social securty. I think it was 700.00 a month. I lived in Ohio and when I moved to New Jersey started driving a truck for a living after years of mental depression everything was going grate.

IM not sure how many years went by, but I ended up working in Iraq with the military. 5 1/2 years in Iraq got the best of me. I suffered from post traumatic stress disorder. I put in a clame with social securty but found work and seem to be ok by staying bizzy working and going to chruch.

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Social securty called me and told me I missed an apointment. I told them I was working and was ok. They said ok. A month or so lator I recived an overpayment for 60 thousand dollars. I still dont understand why I owe and what I owe for.

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The lady at the social securty office made me sine a papper to pay 50 dollars a month. She said it was 25 a month I was paying for the overpayment and she was raiseing it to 50 a month. I never knew anything about 25 overpayment being paid. I am paying 50 a month but cant understand why. I have had a gunshot wound to the head and am not good at understanding things. People keep telling me to leave it alone and 50 a month is a good deal. I dont owe 60,000 dollars. Should I keep paying it? I dont know what to do.

George”

Dear George,

It might be that Social Security is trying to clawback the money they paid you because you said you were fine. That’s just a guess on my part but it seems to fit the scenario.

I would suggest you find an attorney that is licensed in your state and experienced in dealing with Social Security. If you just received an SSA overpayment notice, see my step-by-step guide to what to do right now — including how to stop withholding within 30 days and how to request a waiver that can erase the debt. You should not play around with this. The situation needs attention.

Please post your responses and follow-up messages to me on this in the comments section below.

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Steve Rhode The Get Out of Debt Guy | Consumer Debt Expert
Consumer debt expert & investigative writer. Personal bankruptcy survivor (1990). Washington Post award-winning author. Exposing debt scams since 1994.

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