A mother struggling with schizophrenia, extreme poverty, and the demands of raising a teenager is now facing a $32,000 bill from the Social Security Administration. According to a post on the r/SocialSecurity subreddit, this woman — who was receiving Social Security Disability Insurance, or SSDI — unknowingly earned too much income while trying to make ends meet. Now, the SSA is asking for repayment of every dollar they say she was overpaid.
Here’s what happened — and what others in similar situations should know.
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How Social Security Overpayments Happen
The SSA issues overpayments when someone receives more benefits than they were entitled to. This can happen for various reasons, including unreported work activity or income changes.
In this case, the Reddit user explained that their mother-in-law picked up extra shifts while on disability to support her family and “lived off scraps.” While her intentions may have been survival, Social Security requires that beneficiaries report any work or income. Failing to do so — whether intentional or not — can result in the agency demanding repayment.
What Does It Mean To Owe Social Security?
Although the Reddit post describes the agency as “suing” the woman, technically, that may not be what’s happening. Instead, she likely received what’s called an overpayment notice. This is a formal letter from the SSA stating that she received too much in benefits and must pay the excess back.
In cases like this, benefits can be suspended until the overpayment is recovered. If the person is no longer receiving benefits, the SSA may collect the debt through tax refunds, wage garnishment, or by reporting it to credit bureaus.
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Options for Appeal and Waiver
Fortunately, there are paths available to contest or reduce the debt. According to the SSA, anyone who receives an overpayment notice has the right to:
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Appeal the decision if they believe the amount is wrong or they were not actually overpaid.
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Request a waiver if they believe the overpayment was not their fault and they cannot afford to pay it back.
To file an appeal, the person must use Form SSA-561 within 60 days of receiving the notice. A waiver can be requested at any time using Form SSA-632. If the overpayment was less than $1,000, a phone call to the local Social Security office may be enough to start the process.
While the waiver process does take into account the person’s income and expenses, SSA reviewers will also consider whether the individual failed to report required information, such as income from work.
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Repayment Plans May Be Available
If neither an appeal nor a waiver is approved, the SSA may work out a repayment plan. This can include monthly payments as low as $10, depending on the individual’s financial situation.
Still, for someone in deep poverty, even a modest monthly deduction can feel impossible. That’s why experts and advocates often recommend acting quickly — filing paperwork, calling the SSA, and seeking legal aid if possible.
The Bottom Line
While this mother’s story is heartbreaking, it’s not unique. Overpayments happen — even to people doing their best to survive. Anyone receiving SSDI or SSI should report all income promptly and review every letter from the SSA carefully. And if an overpayment notice arrives, take action right away.
Resources and support exist, but the system often requires those in the toughest situations to advocate for themselves.
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This article ‘She Lives In Extreme Poverty’: Why Social Security Is Demanding $32K From A Disabled Mother originally appeared on Benzinga.com
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