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Avoiding Social Security Overpayment
Many people who receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) fear overpayment by Social Security that they will have to repay later. The one hard and fast rule to avoid overpayment is: Report, Report and Report.
1. Report ALL changes in your life situation: births, deaths, moves, job starts and stops, coaching services, special circumstances that are in place to help you work, and any pay raises.
2. Send written confirmation of all conversations you have with Social Security employees. (“Dear Mr. Smith, When I met with you last week, I understood the following things to be true…”)
3. Go in person to the Social Security office to report life changes whenever possible. Always get the name of the worker with whom you speak (ask for a business card to help with this).
4. Ask for information in writing.
5. Ask for a written reference to any rules that are discussed, so that you can remember them later and have a record of the situation if there is a future problem. If a worker says it is in the “Redbook”, ask him/her to highlight the appropriate section for you.
6. Keep copies of all materials received from or sent to Social Security (keep a three-ring binder and try to keep it in order by date).
7. If you do not understand, keep asking questions or ask an advocate to help you.
8. DO NOT SPEND any Social Security payment if you know you are not entitled to it.
9. Don’t answer any questions “yes” unless you fully understand and agree.
10. If you get SSI:
You must send copies of any work check stubs to Social Security by the 10th of the following month. (Make a photocopy for your records– your employer probably has a photocopy machine to do this for you when you get your check). The effect of a paycheck on your SSI will be noticeable in the check that comes two months following your work, e.g. January’s work income will affect your March check amount.
11. If you get SSDI:
Social Security has no way of knowing whether you are working nor what your income is if you do not report it, although it eventually gets this information when you file your income taxes and your employers file taxes. The IRS computer and the SSA computers are linked (generally two years later). When you work, it is possible your work income could put you into overpayment status if your gross monthly earnings are over Substantial Gainful Activity (SGA). SGA for 2010 is $1000.00.
For further information on how working affects public benefits please contact the Benefits Planning, Assistance and Outreach Project at (517) 203-1200 or (800) 828-2714. We will connect you with the appropriate benefits counselor in your community.
Updated May 2010
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