SOCIAL SECURITY OVERPAYMENT: "YOU MEAN I HAVE TO PAY THEM BACK?"

I've had about 5 calls during the last 30 days from people who owe money back to Social Security and they are calling me to see if there is some way to avoid repaying the money.

This happens when someone accepts benefits from Social Security that they were not entitled to.  They just keep cashing the checks.  Eventually, Social Security catches on and demands their money back. And this puts the beneficiary in a really bad fix.

An individual called me recently (not one of my clients) because Social Security was demanding repayment of $68,000.  Apparently, this individual had qualified for a disability payment, then sometime later she went back to work.  She worked and kept cashing her Social Security checks for a few years.  Social Security can be really slow and it may take them a while to catch on.  But eventually they do--and they will then demand the money be repaid.

Can a lawyer get you out this mess?  Probably not.  If you take money from Social Security that you are not entitled to, you probably will have to pay it back. 

This usually happens when someone goes back to work and keeps on cashing Social Security checks.  This is just never, never a good idea!

If you are getting an SSDI or SSI benefit and decide to go back to work, you must report your earnings to the Social Security Administration.  I recommend you do so in writing and keep a copy of the letter.  (Individuals tell me, "I called Social Security and told them I was working and they just said it was OK").  This will not fly when the government comes looking for it's money back!

There could be some instances where an individual could work and still be legally entitled to a Social Security check.  The Ticket to Work program would be an example, but it has rules and limits.  Be sure Social Security knows about your job, how much you work and how much you make.  And again, put it in writing.  You simply cannot prove that a telephone call took place or what was said.  Besides that, telephone calls do not entitle anyone to violate federal laws.

Stay out of trouble.  You don't want the government knocking on your door, looking for money back.  If you take money you are not entitled to, you cannot get away with it.  Eventually the sleepy old Social Security dinosaur will wake up, realize that there's a fire under its tail, and come looking for you. And it will hurt!