What Triggers a Disability Overpayment?

Overpayments often result from:

• Unreported income or work activity
• Changes in living arrangements or marital status
• Receiving other government benefits
• Improper calculations by the SSA
• Failing to report improvements in your medical condition

Consequences of Disability Overpayment

Here’s what can happen if the SSA determines that you’ve been overpaid:

Repayment Demand

You will receive an official notice from the SSA that includes:

• The amount overpaid
• The reason for the overpayment
• Instructions for how and when to repay

You’ll typically be given 30 days to respond before the SSA begins collection efforts.

Benefit Withholding

If you don’t repay the amount promptly or arrange a payment plan, the SSA can withhold part or all of your monthly disability checks until the full amount is recovered.

Garnishment of Wages or Tax Refunds

In more serious cases, the SSA may:

• Garnish your wages
• Intercept your federal tax refund
• Use other collection methods authorized by federal law

Interest and Penalties

If the overpayment is not addressed in a timely manner, the SSA may add interest to the debt or apply penalties, increasing the total you owe.

Damage to Your Credit

In rare cases, if the debt is sent to collections, it could impact your credit score, making it harder to secure loans, housing, or credit cards.

Legal Consequences for Fraud

If the SSA believes the overpayment was the result of intentional misrepresentation or fraud, they may pursue:

• Civil penalties
• Criminal charges
• Possible jail time

This is rare, but it underscores the importance of honest and timely reporting.