Social Security could soon take 100% of your benefit check if you’re overpaid. Here’s what to know.
Social security efforts will be paid at high cost, the agency said Friday is Recovery Plan Take 100% of the beneficiary monthly check to deduct that money, rather than the current 10%.
Policy changes highlight problems Financial difficulties For some beneficiaries in the past few years, prompting the Social Security Agency under the Biden administration to limit kickbacks to 10% of a person’s monthly welfare check.
But for older people who find themselves stuck in overpayment problems, the Trump administration’s reversal could lead to financial stress. Despite the small amount of overpayments, they are often the result of social security’s own misestimation and may surprise beneficiaries because it’s hard to know if you’re paid.
“People don’t usually know they’re being paid a high salary – assuming the government gives you the right amount, you’re getting benefits,” Nancy Altman, president of Social Security Engineering, advocacy group Social Security Engineering, told CBS MoneyWatch. “When people get letters from the government, they really try their best, ‘You owe $10,000’ the $10,000 they don’t have.”
The Social Security Bureau did not respond to a request for comment.
This is something to know.
How many people get overpaid from social security?
Under one, less than 1% of agents in the Social Security Agency’s payments are “inappropriate” payments. 2024 Report From its inspector general. As the report points out, while it is a small portion of the $1.6 trillion benefits paid each year, it still adds billions of dollars.
The report noted that from fiscal 2015 to fiscal 2022, the Social Security Agency paid approximately $72 billion, most of which were overpaid. This accounts for 0.84% of the total social security payments during this period.
How does overpay happen?
The agency says they are usually caused by two problems:
- The beneficiary will not update its revenue data or remind the agency of other changes
- Social Security employees will not update beneficiary records in a timely manner
Sometimes, beneficiaries may not understand that they need to update the agency with new information, partly because of the complexity of the Social Security system, which exceeds the complexity of 20,000 page rulesThe Inspector General said in his 2024 report.
Sometimes SSA employees who have to manually calculate complex benefits in some cases can make mistakes, the report added.
However, in some cases, seniors receive “strategic payments,” Ed Weir, a social security manager who runs YouTube channels.
Weir noted in a recent webcast on the issue that sometimes older people of all retirement age are still working after claiming Social Security, and they are still working, unsure if they will hit the $23,400 income limit. According to its rules, social security will Return $1 benefits Income per $2 is above that threshold.
Will said some older people decided: “‘I’ll let it ride because I won’t know until November or December if I’m going to end.”
But older people who now choose “strategic overpayment” may lose one or two months of benefits due to the new rebate policy, Weir added.
When will the new policy take effect?
SSA said it will begin requesting 100% benefits checks to cover new payment cases starting March 27.
Withdrawal rate for those who are overpaid by March 27 will remain 10%, and the overpayment rate for supplemental safe income will also remain in the program for low-income elderly and Americans with disabilities.
What happens to Medicare if your Social Security check is withdrawn?
For older people, health insurance coverage could be another pitfall for welfare checks to receive 100% rebates, experts say. This is because most seniors automatically deduct Medicare Part B premiums from their monthly social security checks.
The Social Security Bureau did not respond to a request for clarification on the issue.
Altman of Social Security Engineering said it is unclear whether seniors must arrange to pay for their Medicare premiums through another payment system or whether the SSA allows them to pay their health care costs first and then withdraw the remaining money.
“If you’re using Medicare, it means you may not pay for Medicare, so you may lose Medicare,” Will said. “It’s a Didi effect.”
What if the financial difficulties are caused in the back period?
Before Biden reforms, some Americans are experiencing financial difficulties after receiving the equivalent shock bills, before cutting kickbacks to 10% of a person’s welfare checks Thousands of dollars. Some people even Being brought into homelessness KFF reported in 2023 that their welfare was deprived.
The beneficiary has the right to request a waiver of passage SSA Form 632Will noted.
“To give up payments, two things must be met: No. 1, it’s not your fault, No. 2, you don’t have the ability to pay,” he said.
You can also file a lawsuit against the overpayment if you believe the overpayment amount is incorrect or you do not agree to your payment method SSA Form 561.
Finally, if living expenses cannot be met due to repayment, you can also ask for other payment amounts, SSA said.
“With Social Security, if you disagree with this decision, please appeal,” Will said on his webcast. “Always attract everything.”
