Social Security Overpayments Could Cost You
Audio version available here:
Length: approx. 1 min. 10 sec.
For Americans who rely on Social Security benefits to get by—often retirees and disabled individuals—each check is crucial. Unfortunately, the Social Security Administration can occasionally get it wrong and send these recipients an accidental overpayment. This is a problem, as the Administration expects beneficiaries to return the entire amount overpaid.
The timeline of these overpayments is especially an issue. There is no statute of limitations on overpayments, so you could receive a repayment notice even decades after the original check was issued. This can be taxing on retired and disabled Americans, as in most cases where too much money was paid, the recipient does not have enough income to return the money they believed to have earned, particularly when the government requests upwards of $50,000 in just 30 days.
As of late 2023, there is no legislation protecting Americans from this practice. You can appeal the overpayment notice and request a repayment waiver, but they are rarely granted. For this reason, you should have a plan to be independent from Social Security in your retired years. Speak with an experienced financial advisor for guidance on how to achieve this. If you aren’t sure on where to find one, reach out to us at XQ CPA by phone or online. We would love to help you.
Phone: 832-295-3353
Online Booking: https://xqcpa-bookme.acuityscheduling.com/schedule.php
