Your Social Security benefits may be lowered at the end of this month if you now receive them.
Following the Social Security Administration’s announcement in April that it will begin withholding payments from overpaid claimants beginning at the end of July, some Americans would notice a 50% reduction in their Social Security payouts.
What you should know about the new policy and its implications is provided here.
Why is the Social Security Administration withholding payments?
The Office of the Inspector General at the Social Security Administration claims that between fiscal years 2015 and 2022, the agency made about $72 billion in erroneous payments.
This can occur when a beneficiary fails to notify changes in their income, which causes the agency to compute their benefits inaccurately.
Who will be affected by the new Social Security policy of withholding payments?
According to KFF Health News, the regulation will impact 2 million Americans who received excessive Social Security benefits during the fiscal year that concluded in September 2023.
If you are one of the people overpaid, how do you pay Social Security back?
According to the SSA’s new standards, impacted claimants should have gotten notice by April 25 that the agency would begin withholding 50% of their payments after 90 days until the overpayment amount was reimbursed.
By July 24, 50% of benefits would be collected by the agency.
You have three options for repaying the overpayment: cheque, credit card, or online bill pay.
If you can’t afford the repayment or think it was done incorrectly, you can also ask to have it waived.
That form is available here.
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