Social Security Took My Whole Entire Income Tax Refund

[kacey89]

Hello, I am very stressed out due to to the fact that social security administration obtained my whole entire income tax refund. I did not make that much last year and they took all $1,276 of it! I am a 21 yr college student and I really was depending on that money to help me pay for books and other living expenses. I called the IRS to see why there has been an offset on my income tax and according to them the social security said I had a past debt that was not paid. I thought how is that even possible?? And i remembered when my sisters and i was receiving letters from ssa saying we owed huge lump sumps of money. According to ssa I owed them $16,000 dollars and that my dad was receiving disabilty benefits and i was the beneficary! I was only like 3 at the time and I don't see how it's fait I owe money that they continued to over pay him! If you ask me I feel like I am being fraud! I think this is a ll just a set up. If i was a "minor" at the time why am I being held accountable for their stupidity, and to top it off what ever large amounts of money they were paying my father I never received and my mom had never received. I lived with her since all my life and she never brought it to my attention that she was receiving anything! I am so so stresed out because I even filed the waiver form and did the statement explaining that I have nothing to do with the security overpayment and I am even more upset that they didn't file the information until a year later! I had received a letter in the mail after I called IRS about my tax refund stating why I did not receive my money. Now I don't know what to do because I don't have the money to pay my bills and it could take up to 2 months or more before I even hear about ssa! someone please help me! i really am lost! i just don't know what to do. Another thing I found strangely odd was that my sister who is 18- did not get her income tax money withheld! Like I don't get it!According to ssa she owed the most money!!! And so I get stuck having nothing! I am lost! Will they ever refund me the money that is owed?? I really want to sue SSA for putting me through this!

[Janke]

The first thing I would suggest is to adjust your income tax withholding so that you don't have a tax refund next year that can be attached because it could take that long or longer to get this resolved in your favor, if it can be. If you adjust your withholding though, you run the risk of have a tax liability next year instead, so you could owe the IRS money instead. But at least it's money toward a bill you agree with.

So you were notified at one time that you owed SSA $16,000 and you didn't do anything about it and thought it would go away. If you take no action, the overpayment doesn't go away. SSA took the only action available at the time - collect your federal income tax refund. If you never have a refund, SSA won't be able to collect from there, but that still doesn't get rid of the overpayment. The unpaid balance will be recovered later, when you can least afford it, when you become disabled and entitled or when you retire.

You also need to read the overpayment notices to see the period of the overpayment and the reason for the overpayment. Adults are not required to explain to three year olds or 17 year old children that there is money being paid for their support. And unfortunately for you, you can be considered liable for an overpayment if the money was spent on you.

https://secure.ssa.gov/apps10/poms.n...category=02022

I have attached a link to the entire section that SSA will use to determine liability for repayment and policy on waiver of recovery. You may not be able to get SSA to act in the timely manner that you want, but you do need to be proactive and stay on top of this. You have filed a request for waiver. Did your local office tell you how long before you expect a decision? If so, be sure to follow up. Keep of log of who you spoke with, when and what they said. If you want to try to establish that the money that was paid to the representative payee was not spent on you, you will need something other than your memory. Are there custody agreements? Are there court records? Did your father pay child support to your mother for you? Gathering this evidence may take you some time, so get busy. If the waiver is denied, you will have 60 days to file an appeal. Don't put this on the back burner. You see what can happen. Use the energy you have been expending on anger to energy used to being proactive.

[kacey89]

thanks for your help. I did contact them when I first received the notice I did immediately respond to SSA. My problem is that why should I be held accountable for paying back anything?? If I was a minor at the time. And my parents were not together and I lived with my mom. I don't understand why SSA is asking me to pay when they are at fault here.

[Janke]

Because they assume the money issued to a payee your behalf was spent on you. That makes you liable.

[Bubba Jimmy]

I think you need to personally go to your nearest Social Security office and discuss the matter with them. You did not personally apply for benefits, and they were paid to another person on your behalf. Therefore, you should be held blameless for the overpayment. There are provisions in the law that will allow them to make such a finding, but not if you just ignore them.

[kacey89]

Even if I am "liable" i was not living with him the times he was starting to receive an overpayment. So I guess I will have to prove that in the courts if I get denied and which I will have proof of.

[Janke]

Why do you want to wait to prove it in "court". Why don't you submit the proof now with your request for waiver so it can be evaluated?

And have you changed the withholding on your paycheck so that you don't get an income tax refund next year that can be attached? If you take that advice, be sure to set aside some money in case you have to pay extra to the IRS on April 15, 2012. The IRS charges interest and fees when taxes are paid late. SSA does not.

[kacey89]

Yes I am going to do just that. I have child support and I have my school information which shows I was not living with him. I also have my moms old tax returns for which she put me down as a dependent. The situation that I am in currently does it happen to a lot of peoople? Does SSA make common errors like this all the time? I feel like I am living in a bad dream!!!

[Janke]

I'll ask the harsh question: Is your dad a bum and a cheat? Did your dad lie to SSA and said you were living with him? What reason would SSA have for not believing your father?

[kacey89]

I think you answered the question.