1 month ago
The Social Security Administration is capping clawbacks to 10% of benefits checks alternatively of 100%. (iStock)
The Social Security Administration (SSA) is capping clawbacks of use overpayments astatine 10% of benefits checks alternatively of 100% aft being criticized for draconian repayment plans that near immoderate beneficiaries destitute.
Social Security Commissioner Martin O'Malley said successful a statement that nan agency would cease "the heavy-handed believe of intercepting 100% of an overpaid beneficiary's monthly Social Security benefit" if they grounded to respond to a request for repayment. Additionally, nan Social Security Administration will widen repayment plans to 60 months, up from its limit of 36 months, giving recipients an further 2 years to repay nan money.
The changes travel after reports at nan extremity of 2023 indicated that immoderate Social Security and Supplemental Security Income (SSI) recipients had seen their benefits suspended aliases were assessed overpayments owed to COVID-19 stimulus checks, worthy up to $3,200 per individual aliases $6,400 per joined couple. However, these payments, made betwixt April 2020 and July 2021, were expected to beryllium independent of Social Security benefits.
"For 88 years, nan hard-working labor of nan Social Security Administration person strived to salary nan correct amount, to nan correct person, astatine nan correct time," O'Malley said. "And nan agency has done this pinch a precocious grade of accuracy complete a monolithic standard of beneficiaries. But contempt our champion efforts, we sometimes get it incorrect and salary beneficiaries much than they are due, creating an overpayment.
"When that happens, Congress requires that we make each effort to retrieve those overpaid benefits," O'Malley continued. "But doing truthful without respect to nan larger intent of nan programme tin consequence successful sedate injustices to individuals, arsenic we spot from nan stories of group losing their homes aliases being put successful dire financial straits erstwhile they abruptly spot their benefits trim disconnected to retrieve a decades-old overpayment, aliases disablement beneficiaries attempting to activity and uncovering their efforts rewarded pinch ample overpayments. Innocent group tin beryllium severely hurt. And these injustices daze our shared consciousness of equity and bully conscience arsenic Americans."
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Overpayments overhaul includes different changes
The SSA besides plans to reframe its guidance and procedures truthful that nan load of impervious shifts distant from nan claimant successful determining whether location is grounds that nan claimant was astatine responsibility successful causing nan overpayment.
The agency besides wants to make it easier for group to petition a repayment waiver successful lawsuit they judge they weren't astatine responsibility aliases are incapable to pay. To qualify, Social Security beneficiaries would only request to supply a verbal summary of their income, resources and expenses, and recipients of nan means-tested SSI programme would not request to supply moreover this summary.
The changes are portion of nan overhaul nan SSA announced past twelvemonth aft coming nether legislature scrutiny complete nan magnitude of overpayments it made. The SSA pays $1.4 trillion successful benefits to much than 71 cardinal group annually and gets it correct successful astir instances. However, successful 0.5% of cases, beneficiaries whitethorn person received overpayments of Social Security benefits. That number rises to 8% for overpayments of nan Supplemental Security Income (SSI) program. The agency is required by rule to set benefits aliases retrieve debts.
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Keep much of your benefits successful these states
More Social Security recipients may beryllium taxes connected their benefits for nan first clip this taxation season, according to nan Senior Citizens League (TSCL).
In fact, 23% of study participants who received Social Security for 3 years aliases much said they paid taxation for nan first clip during nan 2023 taxation season. This percent will apt summation this taxation play because of nan 8.7% COLA summation successful 2023.
Social Security benefits are taxed erstwhile incomes transcend $25,000. Since nan taxation became effective successful 1984, this fixed period has ne'er been adjusted for inflation. Up to 85% of Social Security benefits tin beryllium taxable erstwhile income exceeds definite thresholds.
However, Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming person nary income tax, which intends that Social Security status benefits aren't taxed astatine nan authorities level, according to a caller AARP report.
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