Social Security Disability payback for a minor - questions

I spoke with her this afternoon.

We're on a much better relationship footing now I think. I apologized for saying some things as fact to her last night which might have not been correct. I offered to help but made it clear that it is her option to whether to accept that help or not and that we'd be friends regardless.

I did have the timing off. She turned 18 in the summer after her junior year of high school and then left high school in the fall of her senior year in November when she was about 18 1/2. It sounds like the overpayments are from that November onward.

It also sounds like what happened is that she got a full time job, and Social Security flagged the situation because her job was paying into Social Security via her regular paycheck.

The overpayment amount is about $2K, which I'm guessing represents the handful of months between when she left school in November and the SS computers sent a notice and things got straightened out.

She does have the letter from Social Security, and she did say it had her name on it. It sounds like she's willing to let me read it. I've offered to go to the SS office tomorrow with her and get her questions answered.

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@ivinsfan, without disparaging her parents, I recommended that she go to the SS office to verify with them how much was paid out and when so that she can just get the facts from them and not just from her parents...miscommunications and misunderstandings can happen when the telephone game is played: SS -> parents -> kid. And I think the parents are asking her to repay SS directly.

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It does sound like the SS would let her set up an installment plan if she wanted or needed to.

It does sound like SS can claw back the benefit from her, from her rep payee (probably her father), and possibly from her brother too if he received similar auxiliary benefits during that time (see "contingent liability" at https://oig-files.ssa.gov/audits/full/A-04-16-50110.pdf).

There is an interesting wrinkle - she might not be liable for repayment:

"SSA POMS states that, in certain situations, SSA will not presume the overpaid childhood beneficiary is equally liable for repaying an overpayment. POMS also states that SSA will not presume equal liability if the available facts when SSA discovers the overpayment negate such a presumption. For example, a childhood beneficiary is not liable when a representative payee misuses benefits, receives benefits after the beneficiary’s death, or is overpaid because the entitled child is no longer in his/her care. In these situations, the representative payee is solely liable for repaying the overpayment."

I don't know if any of the above apply to her circumstances, but it may be worth asking. (Yes, even if her rep payee is solely responsible, family dynamics may still end up with her chipping in some amount.)
 
You are a good guy for helping her figure this out. The 64 dollar question is who got the money? If she was past 18 and the money came directly in her name then yes it would be on her to get this straightened out and make the payback. Although I don't think any 18 year old would be aware of that fact in the moment. Even at 20 this would be complicated.
 
You are a good guy for helping her figure this out. The 64 dollar question is who got the money? If she was past 18 and the money came directly in her name then yes it would be on her to get this straightened out and make the payback. Although I don't think any 18 year old would be aware of that fact in the moment. Even at 20 this would be complicated.

She says that her parents told her they gave her most of the money. They probably did, but I'm still going to encourage her to triangulate with the SSA records so she has all the information herself.

And yeah, a fair amount of adulting going on for a 20 year old.
 
I know it's relative, but $2K is not a large amount and if the appeal is not in her favor, she should set up a repayment plan with SS office. Her parents are likely not well off, considering that her father is on disability. She is abled body and should take on the burden of repayment if the appeal fails.
 
I read that there is no time frame but a reasonable "timely" clawback is 4 years.

I could be way off here but I remember reading about one that was like 40 or more years old... might not have been SS though...
 
It sounds to me like the parents received payment for an adult child who was no longer eligible. It took several months to clear up and they did not pay back the money at the time.

When I was 18 and in my first year of college my father was terminally ill and I received 1 SSA check because at the time you were eligible if attending college and under 22.
Then they changed the law and the law change and the SSA check must have happened close together- I don’t actually remember the details. But I remember taking the money back to the local SSA office and getting a receipt for the payment. I kept that receipt for years. Just in case.
When I signed up for the my social security account it listed my social security information and then it listed my dad’s Social Security information-maybe dates? I can’t remember and I don’t seem to have access now that I’m receiving SSA.
 
When you care for a child while on SS the extra payments are for the care of the child. Some people put these payments into a trust, like a UGMA, for the child because SS can ask for the funds back if you can't prove the funds have been spent for the child and not yourself.

Conserved funds are those funds sent but not yet spent for the child, they can be clawed back. SSA - POMS: GN 00603.055 - Transfer of Conserved Funds
 
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That's a nice common sense reply SecCor and it's very kind of you to want to help the family figure it out. It's possible the parents don't have any extra money either. Perhaps a repayment plan can be negotiated . I am really curious how this issue came to light. Good luck to this family...
+1 on all your points here.
 
I believe there is generally a timeframe they consider when seeing if someone can afford to pay it back (such as 3 years?) so that might factor in.

I believe the office can bring immediately up in their computer any letters sent so I personally wouldn't be concerned with that aspect. I would also ask for a supervisor if need be.
My comment above was meant as: I believe they like to have the overpayment paid back in 3 years but there very well could be lots of leeway on that if arranged?
 
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