Social Security Demanded Over $40,000 Back From Texas Woman: 'So Unfair'

Social Security recipients asked to pay back thousands of dollars in overpayments by the Social Security Administration (SSA) told Newsweek they were left panicked and confused by the sudden request of a huge sum from the federal agency.

The SSA has recently come under fire after an investigation by the Cox Media Group and KFF Health News revealed that millions of Americans were asked by the agency to repay billions of dollars in overpayments. Many of them are among the most vulnerable individuals in U.S. society, including people on disability, retirees and the survivors of workers who have died.

According to data by the SSA's inspector general shared by the news agencies, the SSA received a total of $4.7 billion in overpayments in the 2022 fiscal year, while $21.6 billion remains outstanding. The agency claims back this money by reducing or stopping monthly benefit payments, intercepting federal tax refunds, or seizing wages.

A recent poll by Redfield & Wilton Strategies on behalf of Newsweek found that one in four recipients said they had accidentally been paid more than they were owed. The SSA said that around 8 percent of payments for the Supplemental Security Income program are too high "due to the complexity in administering statutory income and resource limits and asset evaluations."

The SSA acting commission, Kilolo Kijakazi, recently apologized after understanding that more than 2 million Americans have been sent overpayment notices, despite reporting a much lower number during a Congress hearing in October.

Because there's currently no limit on the SSA's overpayment lookback period, the agency can notify recipients of mistakes made many years before—which means that the overpayment requests often ask for huge sums of money, money which many recipients are unable to repay.

Karen, who preferred to keep her last name anonymous, is from Richardson, Texas—just outside of Dallas. She told Newsweek her daughter has been on Social Security Disability Insurance (SSDI) since 2011.

"She was only 24 when she started on it, and has severe bipolar, chronic migraines and depression problems," Karen, who's her representative, said. For the first four years, Karen's daughter didn't work or worked only once a week. In 2015, she started working full time and "made too much money," Karen said and was overpaid by about $12,000.

"The problem was that she was not notified of this for two years and was back home by then, unable to work for the next year and half or be by herself," Karen said. Her daughter paid the SSA back out of her benefits for the following three years.

"She got a part-time job delivering food for a restaurant in May 2017 and kept daily records and thought everything was going great," Karen said. "Social security waited almost two-and-a-half years and said she now owed over $40,000 within 30 days and stopped paying her entirely by the end of 2019."

In 2020 and 2021, Karen's daughter worked as an essential worker full-time and lived alone because her parents were considered at high risk for COVID-19.

"She delivered food to high-risk areas to pay for Medicare and her rent," Karen said. "Her psychiatrist had advised her not to because of her bipolar disorder and all the stress. She finally quit and has been unemployed for the last two-and-a-half years," Karen said.

"After 3 reconsiderations, she finally was reinstated but it took a year and she was finally paid for two-and-a-half years back pay, and then a few days later the SSA sent a letter saying that she now owed over $49,000 due in 30 days and will stop her SSDI at the end of this month. So unfair," Karen said.

She said that, for years, her daughter was never given any notice that something was wrong and she was "medically qualified for SSDI" the whole time.

Newsweek contacted the SSA for comment by email on Thursday.

Kesha Logan is a 39-year-old disabled single mom who was diagnosed with Multiple Sclerosis almost 10 years ago and has been receiving SSDI benefits since 2007.

"Back in March, I received notice, out of the blue, saying that I was no longer disabled and that I owed the Social Security Administration almost $10,000," Logan told Newsweek.

"I immediately panicked. I was confused, not understanding why I was suddenly being kicked off and why I owed money," she continued. "They said it was because I went back to work and made more money than I should have, which I wasn't even aware that I was doing," she added. "I can't keep a job long because of my medical condition."

Since she's been cut off from the benefits, Logan has been struggling to support herself.

"I have almost lost my home numerous times through eviction. I can barely pay my bills or take care of my daughter," she said. "I currently have a lawyer on my case but they needed me to pay $200 upfront to continue my disability benefits while they fight my case. I didn't even have the money to do that."

Logan is currently working but said it's "a struggle every day" and her workplace is about to close down soon. "I will be back to having no income at all," she said. "This has put me in a bind and in panic mode."

A bipartisan bill introduced by Reps. Ruben Gallego of Arizona and Garret Graves of Louisiana is trying to limit the SSA's overpayment lookback period to 10 years.