A Social Security Disability overpayment occurs when you receive more money from the Social Security Administration than you should have. The amount of the overpayment you receive is the difference between the amount you should have received the month the overpayment was made and the actual amount you received. If an overpayment of Social Security Disability benefits is paid to you, you are responsible for paying the Social Security Administration back for the amount of the overpayment.
There are a number of reasons that an overpayment may occur. If you earn an income while receiving Social Security Disability benefits and the amount of your actual income is more than you estimated or you did not properly report the income, then an overpayment of your Social Security Disability benefits is likely to occur.
An overpayment of your Social Security Disability benefits may also occur if your living situation changes. For example, if you move to an area where the cost of living index is lower and your Social Security Disability benefits would be affected by this and you do not notify the SSA until later about the move, you may receive an overpayment of Social Security Disability benefits.
An overpayment might also occur if your marital status changes. If your marital status changes when you are receiving Social Security Disability benefits, you must notify the SSA of the change in marital status so adjustments can be made accordingly.
If you are receiving SSI disability benefits and you accumulate more assets or income than the allowable limit in order to qualify for SSI and fail to notify the SSA of these changes, you will likely incur an overpayment as a result of this fact.
If your disabling health condition improves and you are no longer disabled and you still continue to receive benefits because you fail to notify the SSA of the change in your condition, the money you receive once you have no longer been disabled will be considered to be overpayments and you will be required to pay that money back.
If an overpayment does occur the SSA will expect to be paid back. The SSA will, however, work out a repayment plan with you. You can also appeal the SSA’s request for repayment if you feel the overpayment was not your fault. In some cases, it is possible to have repayment of an overpayment waived by the SSA.