Social Security messing with me?

Question

I got notice from Social Security today that I was overpaid in 2006. Now, they want their money back. Within 30 days. Over 6 grand.

Wow! What a hit to the solar plexis! "We made a mistake, so pay it back. Right now."
If I don't pay it, they will simply stop sending me any checks for the next 7 months.

I am not good with finances. But my husband is. And we have an accountant who makes out our tax forms every year. And then, there's the SS office itself who helped me get my benefits started. Don't you think one of them would have noticed that a mistake had been made?

I've been sick over this all day. How can the folks who run SS sleep at night? They sure know how to hurt.

Now, my question... we sold our home and made about $75,000 profit this year. We are now both over 65. Will SS come at us again next year, to make me pay back what they paid me this year, because of this income? If they do, we won't be able to survive. All we will have to live on is our SS

And so, if they demand money back & refuse to send me a check, we couldn't make it.
Why do they insist on keeping your WHOLE check until any overpayments are entirely paid back? If I was a widow & didn't have my husband's help, I would not have anything to live on, would I?
I did not take the overpayments on purpose, I simply did not know that it had happened.
I don't know how the people at SS can live with their consciences. Taking whole checks from elderly folks who don't have much to live on anyway.
Oh, they said I could appeal. Lucky, my husband said we can pay it back. Maybe will have to take out a loan to do it, but I will get this back to them. I just feel sick.

Am praying that they can't touch the income from the sale of our house, or we will be totally screwed. Can they take it, if we were over 65 when we sold that house? We've planned on using this income to get our current house in good repair.

Yeah, I really owe them.

The girl at the SS office had a laugh in her voice when she told me to contact the payroll dept of the place I used to work and get a statement on how much they'd paid me in accumulated vacation time in 2006, and bring that in. ,,... I don't know what the heck she was laughing about. I didn't think it was at all funny.

And then the girl in payroll was also in a sparkly mood, when she told me how much they'd paid. And I was just sick, to realize it was enough to stop payments for 2006.
So then, I said that I didn't know how I was going to live without SS checks for 7 months. She laughed, and said "Well, I hope I have helped you." and then, hung up.
What the H-e- double toothpicks was so FUNNY? Living without a check for 7 months is something for her to laugh about?

After that, my hsband came home, and assured me that we can borrow the 6K.

Answer 1

Unearned income doesn't count so the home sale won't matter.
If you work while collecting early SS you will have to pay it back if you earned more than the limit. Once you are past full employment age you can work and collect.

Answer 2

The good news is that the profits from the sale of a home do not make your social security earnings taxable. The profits from the sale of a home are not considered earned income. Having earned income about a certain amount is what potentially makes Social Security taxable (either in full or in part).

The bad news is that you still have the Social Security Administration hounding you for $6K. Are you certain that they overpaid you? I'd go down to the local office and talk with someone face-to-face. Most of the employees at our local social security office are pretty helpful. If they really did overpay you, try to work out an arrangement whereby you pay them back over time instead of all at once. Explain your income situation and you probably stand a decent chance of the SS personnel treating you reasonably.

Good luck and god bless.

Answer 3

If this is a home you lived in at least three out of the last five years you and your husband can profit up to $250,000 without paying taxes on it. Now, if this was an income earning property such as a rental property or you bought it as an investment, then a portion of that profit may be taxed.

Answer 4

Get someone to help you make sure that you really owe them. Then you need some help. Write your Governor or Congressperson to get them involved. If it is true you owe them, there is a department of the IRS that can arrange for small payments or even to "forgive" some of the amount. Don't let this make you sick.

Answer 5

the same thing happend to my mom, she was drawling unenployment and they said they gave her 433 to much. So they want it in all one lump sum. I dont really have any advice just call your local ss office or human service department and see if they can give you some adivce on what to do. I hope things work out for the best. I agree they just dont care if ppl eat or have a roof over there head they just want the "all mighty green".

Answer 6

sorry but that is the way the ball some times bounces == tight in the belt and you will get through this!!!

Answer 7

If your husband is so good at this and you have an accountant, why are you on y/answers?