Social Security Payments Can Be Seized by Up to Half for Over a Million Recipients – Learn How to Legally Evade This Situation
The Trump administration has implemented several changes to the Social Security program since his second inauguration in January 2017. One of the notable changes is the transition from paper checks to direct deposits for Social Security benefits, set to be completed by September 30, 2024. This move is aimed at reducing costs for the federal government and minimising the risk of Social Security scams.
Another significant change involves the overpayment recovery rate. During the Trump administration, the rate was adjusted to 50%, down from 100% in previous administrations. Failing to report new income to the Social Security Administration (SSA) can result in overpayments, leading to the recovery of these funds.
The SSA has ramped up personal identification measures, requiring beneficiaries to change their direct deposit information in person or online to ensure the accuracy of payments. As of the end of fiscal 2023, nearly 2 million Social Security beneficiaries had not paid back approximately $23 billion in aggregate overpayments.
For beneficiaries facing overpayment recovery, there are options available to manage these funds. Overpaid individuals must provide documentation showing their qualified expenses to qualify for these options. Form SSA-632BK can be used to request a waiver of overpayment recovery if paying back the extra benefits would create a financial hardship.
Form SSA-634, on the other hand, can be used to request a change in the overpayment recovery rate, potentially leading to a reduced garnishment rate and/or a payment plan spanning up to 60 months (five years).
It's important to note that these options are 100% legal methods for overpaid beneficiaries to manage their Social Security overpayment recovery. Beneficiaries may also contest an overpayment or the amount the SSA seeks to recover using Form SSA-561. In some cases, this action could result in the overpayment liability being waived or reduced.
Social Security income is essential for most retirees, with 80% to 90% relying on it to make ends meet. In light of these changes, it's crucial for beneficiaries to remain vigilant and stay informed about their rights and options.
The Social Security Act was signed into law in August 1935 by President Franklin D. Roosevelt. Since then, the program has evolved, with the Trump administration's changes marking a significant shift in how Social Security benefits are managed and recovered.
As of July 2023, over 1 million Social Security beneficiaries have had up to 50% of their checks garnished due to changes made by the Donald Trump administration. This highlights the importance of understanding the changes and taking advantage of the options available to manage overpayments.
Lastly, it's worth noting that non-blind workers with disabilities are allowed to earn up to $1,620 per month in wages and salary without having their disability income stopped in 2025. This change provides more flexibility for these individuals to earn additional income while still receiving their Social Security benefits.
In conclusion, the Trump administration's changes to the Social Security program have had a significant impact on beneficiaries. Understanding these changes and the available options for managing overpayments is crucial for beneficiaries to protect their financial well-being.
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