If you are receiving Social Security disability benefits, the last thing you want is to get a letter in the mail telling you that you owe Social Security money. I have seem many individuals with overpayment notices for tens of thousands of dollars.

So, what can you do?

Read what Social Security sends you

This may sound obvious, but who wants to slog through the brochures and letters Social Security sends? Well, unless you want to be stuck with an overpayment, you do!

Social Security expects individuals to be diligent about complying with the requirements of the benefits they receive. Social Security sends out publications when benefits begin and it is a good idea to review them at least annually. Here are two critical ones:

• Reporting Your Wages When You Receive Supplemental Security Income (SSI)
• What You Need To Know When You Get Supplemental Security Income (SSI)

The second publication provides a list of things you must report to Social Security in plain english with links to further explanations.

Personally, I still see quite a number of people getting bitten because they missed some nuance of the Social Security system and Social Security can be very slow to correct errors which can result in
overpayments in the tens of thousands of dollars. So I am sympathetic to individuals facing an overpayment.

However, the best advice I can give to reduce an individual’s risk of an overpayment, is to read and follow the instructions and notice requirements provided in Social Security publications.

You may note that these publications list the Social Security 800 number as an acceptable way of providing Social Security with information. However, you want able to document your contact with Social Security. If an individual later has to go to hearing, how will they prove that they made a phone call to Social Security and what was said? While it is more difficult, sending a letter with delivery confirmation is often a better method from an evidentiary standpoint.

Request an annual meeting with Social Security

While it may not prevent an overpayment, it is a good idea to try to schedule an annual appointment with Social Security to confirm continuing benefit eligibility. Social Security technicians are trained in the ins and outs of benefit eligibility (even more so than attorneys because of the limitations of legal fees in Social Security matters). Of course, be sure to document the information provided, who the meeting is with, what was discussed, and the outcome.

Unfortunately, the local Social Security office might refuse to add an “extra” meeting to their already overflowing schedule. Sadly, this puts an individual into the position of trying to do a self audit. This is a bad solution because a regular person cannot be expected to know all the eligibility requirements of a trained Social Security technician.

That said, an individual should at least call Social Security to determine the maximum gross (pre-tax and pre-deduction) earnings his or her family can earn and still remain eligible for benefits. Then take a hard look at whether the income is above or below that amount. Being below does not mean a family is safe, but being above that amount is certainly a red flag.

If Social Security alleges that you owe them money to repay an overpayment, you have two choices to fight it:  

1. You can either file a “Waiver of Overpayment,” or 
2. You can file a “Request for Reconsideration.“

Social Security may direct you towards filing the waiver, but there are some things you should know before making a decision.

What happens if I request a waiver?

Filing for a waiver is basically saying, “I owe the money, but I cannot pay it back.”  

The waiver form asks you to describe your financial life in excruciating detail.  If you pay for a cell phone, cable, internet or for anything more than the most basic necessities of life, the chances of Social Security granting that waiver may be fairly small.  

Also a waiver request can be filed at any time.  This is an important distinction between the waiver and the Reconsideration request.  You can even pursue the Reconsideration process and, if denied, then request a waiver. 

What happens if I request a reconsideration?

Unlike a waiver request, the reconsideration request says, “I do not owe you this money!”  It contests the underlying overpayment.

Filing this also puts you into the administrative appeal process.  The reconsideration step is the first part. Social Security will probably deny the reconsideration. However, this is a necessary step to get to the next level, a hearing before an Administrative Law Judge.  

In my opinion, if anyone is likely to award you some relief from having to repay the overpayment, it is the Judge at a hearing.

Keep in mind that the reconsideration process may take between four and eight months.  The hearing process may take another six to eighteen months just to get in front of a Judge and another one to three months for a decision to be issued.  In extreme circumstances, this entire process may take 30 months. However, in Colorado, I would usually estimate about a year and half to two years.  

This is not necessarily a bad thing.  

While the case is under appeal, you can request a forbearance of the repayment since you are contesting the underlying overpayment. A forbearance is simply a request that Social Security stop trying to collect the overpayment while you are appealing the overpayment.  This is simple fairness: you should not have to repay if you contest owing the overpayment.

Strictly speaking, Social Security only has to stop any attempt to collect an overpayment during the reconsideration step of the appeal. Social Security can try to collect the overpayment after you are denied on the reconsideration and waiting for a hearing in front of a Judge.

However, Social Security has to stop collection proceedings during a waiver request. So, it may be a valuable strategy to request a waiver along with filing a request for a hearing to make sure that Social Security does not resume collection proceedings while you wait for your hearing. 

The critical thing you need to know is that you usually only have 65 days to file the reconsideration after the date on the overpayment notice:  5 days to receive it and 60 days to file the Request for Reconsideration.  As always, check the time limits and form requirements in the overpayment notice as these things are subject to change.  

So, while you can file the waiver at any time (and SSA my push you in that direction), if you want to fight the overpayment, you must do so quickly or potentially lose that right.

Updated 05/20/09.

There’s good news if Social Security has told you that you were overpaid, and you need to repay, Social Security benefits! Social Security has increased the “administrative waiver” amount to $1000. 

Administrative waivers of overpayments apply in cases where the cost of recovering the overpayment is greater than the amount of the overpayment itself.

If Social Security claims you are overpaid is $1000 or less, you may be able to have the amount waived because it would cost Social Security more than $1000 to recover the amount.

However, to qualify for an administrative waiver, you also need to show that you were not “at fault” for the overpayment.  

The new amount applies to all cases were a waiver request is pending — even if the waiver request was filed before September 27, 2008. 

This is the first change to the administrative waiver amount since 1993.  Before the new waiver amount became effective on September 27, 2008, the administrative waiver amount was $500.

Here is a popular questions:

I’m on SSI, do I have to tell Social Security about an inheritance/settlement I am getting?

The answer is simple:

YES!

There is no point beating around the bush with this one.  If you are on SSI and “come into money” whether it is a gift, inheritance or settlement (or through whatever means), you need to notify Social Security.

Supplemental Security Income (SSI) is a “needs-based” program.  You only get it if you do not have money coming in from other sources.  So, if you suddenly get some money, your benefits may be reduced or even cut off.

Even worse for some people is the potential loss of Medicaid.  You have to be receiving at least $1.00 of SSI benefits to qualify for Medicaid benefits under Social Security.  So if you lose your SSI, you may also loose your Medicaid (unless you qualify under another program).

Well, I don’t want my benefits cut off!  And I can’t afford to have my Medicaid cut off!!!

I understand, and I sympathize.  However, there are worse things that can happen than having your benefits suspended or terminated.  If you fail to report this money to Social Security, you may face the following:

• Overpayment.  If it would be terrible to have your benefits stopped, imagine how bad it may be to have to pay back money that Social Security says you were not entitled to.  See my articles about how difficult it is to fight an overpayment claim, and how hard it is to get an attorney to help.  In my experience, it is easier to find an attorney to help you get your benefits back after SSA cuts them off rather than trying to find an attorney to help you fight an overpayment.
• Prosecution.  While rare, if Social Security thinks that you intentionally hid assets to keep getting SSI, that’s fraud.  Social Security may turn over your case to the Attorney General’s office for prosecution.

Document communication with Social Security

Ok, so you have decided to do the right thing and let Social Security know about the gift / inheritance / settlement / pot of gold.  Great!  Now ask yourself.  If Social Security comes back in two months or two years and you have to prove that you notified SSA about the money, do you have any proof?

TIP: Always document communication with Social Security.

It does not matter if you spoke to someone over the telephone or in person at the Social Security office with a hundred witnesses.  If Social Security looses all record of your discussion, the ball is in your court to prove you provided notice.

Protect yourself.   Assume that Social Security will not have proof of your communications.  You have to keep that keep that proof yourself.

What kind of proof?

1. A certified, return receipt requested letter is always good.
2. If you meet with someone, follow up with a letter reviewing the communication.
3. A phone log and/or meeting log showing dates, times and who you met and spoke with at Social Security and a summary of what was said.

Keep in mind, none of this is bullet-proof evidence.  However, it may show that you took steps to keep Social Security informed about your money situation, which may save you from a fraud charge.

This is especially important if you meet with Social Security, review your income/assets and Social Security tells you that you can go ahead and keep the Social Security benefit check.  If you do not have proof of the discussion, what will you do if Social Security contacts you in two years and says you were not entitled to those benefits?  Yes, this can happen!

If you are not entitled to benefits, it may not matter if Social Security told you to keep the money

Here is another kick in the head:  even if Social Security tells you that you are entitled to keep the benefits, nothing stops Social Security from changing its mind down the road and demanding an overpayment.  Crazy, but true.

Plus, if you read my overpayment article, you have seen that even if Social Security tells you that it is ok to keep the money, and you are without “fault,” that is only one of the two tests for determining if you have to pay the money back.

You may still have to pay the money back.

Special Needs Trusts

Since you stuck it out through this long article, I will let you in on one way to keep the gift / settlement / inheritance and still maintain elligibility for SSI: a Special Needs Trust.

Special Needs Trusts occaisionally pop up in personal injury cases where a person has been serverly injured and becomes disabled and then receives a settlement for the injury. If the person takes the settlement, will probably make them ineligible for SSI.

However, if the settlement is put into a “Special Needs Trust” which can only be accessed for very specific purposes, Social Security may not count the settlement as an asset.

How to set up a Special Needs Trust?

This requires a very special kind of legal voodoo.  You will need to have a trust attorney help you, and not just any trust attorney can do this properly.  You need a trust attorney who is familiar with special needs trusts.  You want a specialist* for this.

If the trust fails for any reason, the settlement or other money may be counted as an asset and the person may lose SSI benefits and Medicaid.

Updated: 04/19/09

*Disclaimer: Colorado does not certify lawyers as specialists in any field.

I have tried to give you as much information as I can about Social Security overpayment / repayment cases, because the chances of finding an attorney to work with you are not very good.

Many Social Security attorneys get paid out of the back benefits they win for the client (typically 25% up to a cap of $5,300.00 $6,000 as of June 2009).  But, when you have an overpayment case, the best outcome is you will owe $0.00.  25% of $0.00 is $0.00.

In other words, there is nothing for the attorney to take a percentage of, if they win. If you want legal help on an overpayment case you will probably have to pay some money up front. This may be between $1,000 and $3,000 depending on the complexity of the case. While my office does handle Social Security overpayment cases, they make up a small part of my Social Security practice because most people cannot afford the retainer.

Also, many attorneys do not take overpayment cases because of the extra requirement of petitioning Social Security to approve fees.  This takes extra time, beyond the time spent proving the case, just to try to get paid.

Is it worth hiring an attorney on an overpayment case?

Whether paying the retainer is worthwhile for you will depend on how much money you owe Social Security.

If you only owe $1,200, paying an attorney $1,000 probably does not make much sense.  But, if Social Security says you owe $15,000, then it may be worthwhile to pay an attorney for help.

Social Security has to approve any fees an attorney charges you.

When I say, “pay the attorney,” that is just short hand.  What I really mean is that you provide a retainer that is held in trust until the end of the case and the fee petition is ruled on by Social Security.

Under Social Security regulations, an attorney can almost never take any fee unless it is approved by Social Security. Note:  this requirement only applies to fees: paying for the attorney’s time.  Social Security does not have to approve what you owe your attorney for expenses:  money spent developing the case.

When you hire an attorney for a Social Security case, if you pay a retainer toward fees, the attorney can never take fees out of that retainer unless Social Security approves the fees.  You will know if Social Security has approved any fees because they will send you a letter, usually anywhere from 1 to 6 months after the case ends, telling what fees, if any, they have approved for the attorney.  If Social Security denies fees, they attorney must return the retainer.

What happens to the interest?

Good question!  In Colorado and many other states, there are special accounts called IOLTA (Interest on Lawyers Trust Accounts).  These are “pooling” accounts for holding multiple trusts when the amount of money is not large enough, or will not be held long enough, to warrant its own account.  Any interest earned is paid to that state’s IOLTA foundation and the money goes toward information and education about the legal system; not, I am sad to say, mountaintop retreats for retired lawyers. Ah well, a lawyer can dream, can’t he?

In Colorado, the IOLTA accounts are called COLTAF (Colorado Lawyers Trust Account Foundation) accounts.  So, you may hear COLTAF or IOLTA if you deal with a lawyer in Colorado.

Article updated May 13, 2009.

Overpayment cases are very tough to win.  If you decide to fight an overpayment, you need to know what you are up against.

Here is what the law says about how Social Security evaluates whether you have to pay back an overpayment or not.  This is taken from Social Security Ruling 88-6c.

42 U.S.C. § 404(b)

The regulations state in part:

Sections 204(b) and 1870(c) of the Act provide that there shall be no adjustment or recovery in any case where an incorrect payment . . . has been made . . . with respect to an individual:

(a) Who is without fault, and
(b) Adjustment or recovery would either:

(1) Defeat the purpose of title II of the Act, or
(2) Be against equity and good conscience. 20 C.F.R. § 404.506.

So, in order to have Social Security not collect an overpayment you have to be withouth “fault” for the overpayment AND the recovery would either defeat the purpose of the Social Security Act or be against equit and good conscience.

Lets take these one at a time:

You have to be without fault.

Under 20 C.F.R. § 404.507, “fault” is defined, in part, as:

“Fault” as used in “without fault” (see § 404.506 and 42 CFR 405.355) applies only to the individual. Although the Administration may have been at fault in making the overpayment, that fact does not relieve the overpaid individual or any other individual from whom the Administration seeks to recover the overpayment from liability for repayment if such individual is not without fault.

This is critical!  It says that it does not matter that Social Security may have given you bad advice, that you met with them and showed them your paystubs and they still sent you a check.  If you are at fault, it may not matter if Social Security is also at fault.

The first hurdle is that you have to be without fault.  If you knew, or should have known that you were not entitled to receive Social Security benefits, you may have a hard time proving that you were not at fault.

Personally, I have a problem with this.  If you are meeting with Social Security and you honestly provide all necessary information and Social Security mistakenly sends you a check, unless you actually know you are not entitled to it, I believe you should be able to rely on a Social Security technician, whose job it is to know the regulations, telling you that your benefits will continue without you being “at fault” for accepting those the benefits.  Alas, that is not the law.

How does Social Security determine if you are at fault?

In determining whether an individual is at fault, the Administration will consider all pertinent circumstances, including his age, intelligence, education, and physical and mental condition. What constitutes fault (except for “deduction overpayments” — see § 404.510) on the part of the overpaid individual or on the part of any other individual from whom the Administration seeks to recover the overpayment depends upon whether the fact show that the incorrect payment to the individual or to a provider of services or other person, or an incorrect payment made under section 1814(e) of the Act, resulted from:

(a) An incorrect statement made by the individual which he knew or should have known to be incorrect; or
(b) Failure to furnish information which he knew or should have known to be material; or
(c) With respect to the overpaid individual only, acceptance of a payment which he either knew or could have been expected to know was incorrect.

In a deduction-overpayment case such as this, the regulations provide an even higher degree of care for an individual to be “without fault.” 20 C.F.R. § 404.511 provides:

(a) Degree of care. An individual will not be “without fault” if the Administration has evidence in its possession which shows either a lack of good faith or failure to exercise a high degree of care in determining whether circumstances which may cause deductions from his benefits should be brought to the attention of the Administration by an immediate report or by return of a benefit check. The high degree of care expected of an individual may vary with the complexity of the circumstances giving rise to the overpayment and the capacity of the particular payee to realize that he is being overpaid. Accordingly, variances in the personal circumstances and situations of individual payees are to be considered in determining whether the necessary degree of care has been exercised by an individual to warrant a finding that he was without fault in accepting a “deduction overpayment.”

(b) Subsequent deduction-overpayments. An individual will not be without fault where, after having been exonerated for a “deduction overpayment” and after having been advised of the correct interpretation of the deduction provision, he incurs another “deduction overpayment” under the same circumstances as the first overpayment.

I can understand not being “without fault” if you fail to provide information or if you provide false or incorrect information, but the “knew or should have known” section in practice seems to expect people know the Social Security system better than the Social Security technicians themselves.

Lets say you are “without fault.”  then you still have to prove that the adjustment or recovery (repayment) would either 1) defeat the purpose of title II of the Act, or 2) Be against equity and good conscience. 20 C.F.R. § 404.506.

Social Security Ruling 87-16c deals with the “defeat the purpose” portion.

The Secretary has promulgated regulations which interpret the meaning of the statutory phrases: “defeat the purpose of” and “against equity and good conscience.” Defeating the purpose of Title II is defined at 20 C.F.R. § 404.508 (1985):

(a) General. “Defeat the purpose of title II,” for purposes of this subpart, means defeat the purpose of benefits under this title, i.e., to deprive a person of income required for ordinary and necessary living expenses. This depends upon whether the person has an income or financial resources sufficient for more than ordinary and necessary needs, or is dependent upon all of his current benefits for such needs. An individual’s ordinary and necessary expenses include:

(1) Fixed living expenses, such as food and clothing, rent, mortgage payments, utilities, maintenance, insurance (e.g., life, accident, and health insurance including premiums for supplementary medical insurance benefits under the XVIII), taxes, installment payments, etc.;
(2) Medical, hospitalization, and other similar expenses;
(3) Expenses for the support of others for whom the individual is legally responsible; and
(4) Other miscellaneous expenses which may reasonably be considered as part of the individual’s standard of living.

(b) When adjustment or recovery will defeat the purpose of title II. Adjustment or recovery will defeat the purposes of title II in (but is not limited to) situations where the person from whom recovery is sought needs substantially all of his current income (including social security monthly benefits) to meet current ordinary and necessary living expenses.

I really cannot say it any better myself.  So to review, if you need all of your current income (including SSA benefits) for ordinary and necessary living expenses, the repayment may be “defeat the purpose of the act.”  Please note that Social Security does not list cell phone, cable, internet, eating out or going to movies as “ordinary and necessary living expenses.”  If you are spending money on any of these, you probably have income beyond just “ordindary and necessary living expense” and the repayment may not “defeat the purpsose of the act.”

But, if you meet this standard AND you are without fault for the overpayment, you may be able to win an overpayment case.

There is still the second prong, where repayment “would be against equity and good conscience.”  However, this requires a “reliance to one’s detriment.”  You may want to jump to examples which describe what this means in plain english.

Against equity and good conscience is defined at 20 C.F.R. § 404.509 (1985):

“Against equity and good conscience” means that adjustment or recovery of an incorrect payment (under title II of title XVIII) will be considered inequitable if an individual, because of a notice that such payment would be made or by reason of the incorrect payment, relinquished a valuable right (examples (1) and (4)) or changed his or her position for the worse (examples (2) and (3)). In reaching such a determination, the individual’s financial circumstances are irrelevant.

Example 1. A widow, having been awarded benefits for herself and daughter, entered her daughter in private school because the monthly benefits made this possible. After the widow and her daughter received payments for almost a year, the deceased worker was found to be not insured and all payments to the widow and child were incorrect. The widow has no other funds with which to pay the daughter’s private school expenses. Having entered the daughter in private school and thus incurred a financial obligation toward which the benefits had been applied, she was in a worse position financially than if she and her daughter had never been entitled to benefits. In this situation, the recovery of the payments would be against equity and good conscience.

Example 2. After being awarded old-age insurance benefits, an individual resigned from employment on the assumption he would receive regular monthly benefit payments. It was discovered 3 years later that (due to a Social Security Administration error) his award was erroneous because he did not have the required insured status. Due to his age, the individual was unable to get his job back and could not get any other employment. In this situation, recovery of the overpayments would be against equity and good conscience because the individual gave up a valuable right.

Example 3. M divorced K and married L. M died a few years later. When K files for benefits as a surviving divorced wife, she learns that L had been overpaid $3,200 on M’s earnings record. Because K and L are both entitled to benefits on M’s record of earnings and we could not recover the overpayment from L, we sought recovery from K. K was living in a separate household from L at the time of the overpayment and did not receive the overpayment. K requests waiver of recovery of the $3,200 overpayment from benefits due her as a surviving divorced wife of M. In this situation, it would be against equity and good conscience to recover the overpayment from K.

Example 4. G filed for and was awarded benefits. His daughter, T, also filed for student benefits on G’s earnings record. Since T was an independent, full-time student living in another State, she filed for benefits on her own behalf. Later, after T received 12 monthly benefits, the school reported that T had been a full-time student only 2 months and had withdrawn from school. Since T was overpaid 10 monthly benefits, she was requested to return the overpayment to SSA. T did not return the overpayment and further attempts to collect the overpayment were unsuccessful. G was asked to repay the overpayment because he was receiving benefits on the same earnings record. G requested waiver. To support his waiver request G established that he was not at fault in causing the overpayment because he did not know that T was receiving benefits. Since G is without fault and, in addition, meets the requirements of not living in the same household at the time of the overpayment and did not receive the overpayment, it would be against equity and good conscience to recover the overpayment from G.

There are few reported cases which discuss the recovery of overpayments under Title II of the Act. However, other federal programs have similar statutory and regulatory language governing the recovery of overpayments. For example, the recovery of overpaid Supplemental Security Income (“SSI”) benefits (Title XVI) is governed by 42 U.S.C. § 1383(b), which provides in part:

The Secretary (A) shall make such provision as he finds appropriate in the case of payment of more than the correct amount of benefits with respect to an individual with a view to avoiding penalizing such individual or his eligible spouse who was without fault in connection with the overpayment, if adjustment, or recovery on account of such overpayment in such case would defeat the purposes of this subchapter, or be against equity and good conscience. . . .

If you have read this far, first of all, thank you.  As you can see, the cards are pretty well stacked against anyone pursuing fighting to stop a repayment of a Social Security overpayment.   But it is not impossible.

To summarize, you have to be without fault for the overpayment and you either have to need all your income including Social Security benefit for the most basic of expenses or you relied to your detriment on the benefits continuing.

Good luck.

It is the opposite of winning the jackpot:  you open the letter from Social Security and find out that you owe them $10,000, $20,000, even $30,000.  

What happened?

There are several scenarios which may result in Social Security claiming an overpayment occurred; and demanding that you repay some, or all, of your benefits.

Sometimes, Social Security decides that you really weren’t disabled all this time. This is a reversal of the disability determination. Social Security previously thought you were disabled.  Now, they don’t! So, all that money that they paid you, they would like it back.  Now. 

The other set of facts I frequently see causing an overpayment is where you make too much money to receive any or all of your Social Security benefits. This typically happens in Supplemental Security Income (SSI) cases. In order to receive SSI, you have to be medically disabled (physically and/or psychologically) AND you also have to qualify financially. If you, your spouse or your family (if you are child under the age of 18), makes too much money or has too much in assets, you may no longer qualify for Social Security.

What frequently happens is the disabled individual works and makes too much money, or their spouse makes too much money, or they receive money or land as a gift or inheritance.  Sometimes it is a matter of simple arithmetic:  if Social Security only lets you make up to $940 per month (Substantial Gainful Activity threshold for 2008), and you make $1,200, they you should know that you may no longer be entitled for part or all of your SSI benefits.

However, it is not always that simple.  What if you are paid every two weeks? That would mean that some months may have two pay period and some months have three pay periods. During the three pay period months, your earnings may go up by a third, though your hours you work stay the same. This may mean that your income puts you over the SGA threshold for that month.

Another fairly common scenario is that you meet regularly, at least annually, with Social Security. You bring in your pay stubs and the Social Security technician reviews them. No one tells you that there is a problem and your benefits continue. That is, until 2, 3, 5 years down the line. Then Social Security tells you that your benefits should have been reduced or stopped because of your earnings and you now have to pay all that money back.  

Any of these situations can cause an overpayment.  

Click here to read other articles related to Social Security overpayments including what you can do about an overpayment and the standard of review.

You, or your child, are on Social Security, when out of the blue, you get a letter:

Your benefits will cease as of …

or

An overpayment was detected due to your failure to notify Social Security of your spouse’s income …

or

Since turning 18 years of age, we have determined that you are no longer disabled under our rules …

You may be thinking, “this is clearly a mistake;” “I go in every year with my spouse’s paystubs;” or “nothing has changed in my condition.”

So, you call Social Security to clear this up. Maybe you make an appointment to go in. Maybe you speak to an understanding soul who says it is all a mistake. You think to yourself:

The letter said I could appeal, but I don’t need to do that, I will just get it cleared up.

Watch out! 

There is almost certainly a clock running.

In many circumstances, Social Security gives you 60 days to file your appeal after your receive a notice from them (Social Security assumes you recieve the notice 5 days after the notice’s date).

In some circumstances, you only have 30 days to appeal; and you only have 10 days to request the benefits continue during an you appeal if Social Security plans on stopping your benefits.

Ok, so there is a deadline. Who cares? I am just going to get this taken care of.

There is nothing wrong with trying to resolve a problem with Social Security informally. In fact, it is almost certain that if you are able to resolve the issue informally, this will be a lot faster that getting pursuing an appeal.

Here is the catch, if you do not resolve the problem before the appeal deadline, unless you qualify for an exception, you lose the right to challenge Social Security’s action through an appeal.

Sixty days may seem like a lot of time to get your problem solved, but it can quickly slip away:

• You schedule an appointment, but when you arrive at Social Security, they do not have you down for the appointment, or the person is running behind and cannot see you, or has left for the day, or is on vacation. You schedule another appointment, but there is another reason why you cannot be seen.
• You speak with Person A at Social Security who is very understanding and genuinely wants to help you. However, weeks pass and you hear nothing from Social Security. You call, but you cannot reach Person A. You leave messages, but you never get called back. You call again and speak to Person B. Person B cannot find any record of your conversation with Person A and is unwilling to do what Person A promised.

I have seen too many cases where an individual was “strung along” by Social Security until the deadline passed and the appeal window closed.

I do not think Social Security is intentionally trying to string you along, mislead you, or take away your appeal rights. The vast majority of people working at Social Security are honestly trying their best. But, Social Security is greatly over-worked, under-staffed, and under-funded.

Delays happen, misunderstandings occur, instructions can be miscommunicated, misdirected, or simply buried under a pile of other tasks. All the while, tick-tock, the appeal deadline rapidly approaches.

So, here is what it all boils down to:

1. You can try to resolve your problem with Social Security informally, but always remember the deadline to file a formal appeal. If it turns out that you do have to file a formal appeal, make sure you get a receipt!
2. No matter what anyone at Social Security tells you or promises you, it is not a done deal until you have it in writing. If you are told that the problem will be fixed and you will receive a letter “shortly.” Ask for a date that you should receive it by, and the direct extension number to the person you are working with. Make sure the date is before the deadline. If you do not receive the letter by the time promised, contact the Social Security worker immediately.
3. If you cannot get written confirmation that the problem will be resolved, file the appeal.

Pursue every avenue you can to resolve a problem, but keep the appeal deadline in mind. The appeal is the only way to preserve your rights if you cannot resolve the problem informally with Social Security.