Going over the $2,000 SSI resource limit can happen—tax refunds, gifts, or just losing track of your balance. Here's what happens and what to do about it.
In this article, we'll cover:
- What happens when you go over
- How SSA finds out
- What to do if you're over
- How to avoid overpayments
- Dealing with overpayment notices
What Happens When You Go Over
Immediate consequences:
- You're ineligible for SSI that month
- Benefits should stop for that month
- You may not know right away
- SSA may discover later
How it works:
- Resources counted on the 1st of month
- If over $2,000 on the 1st = ineligible
- Even by $1 over
- Both bank accounts and cash count
If you received SSI that month:
- You weren't entitled to it
- Creates an overpayment
- SSA will want it back
- May not discover for months/years
Example:
- January 1st: Bank balance is $2,150
- You receive January SSI payment
- That's an overpayment
- You'll need to repay it
How SSA Finds Out
Ways SSA discovers excess resources:
Financial institution matching:
- SSA gets bank data
- Compares to what you reported
- Can see large deposits
- Regular matching program
Annual redetermination:
- SSA reviews your case yearly
- Asks about bank accounts
- Requests documentation
- Catches unreported resources
Tips and reports:
- Someone reports to SSA
- Employer reports
- Other government data matching
- Various sources
Self-reporting:
- You tell them (you should)
- Better to report yourself
- Shows good faith
- May reduce penalties
What to Do If You're Over the Limit
Step 1: Don't panic
- It happens to many people
- It's fixable
- Doesn't automatically end benefits
- Act promptly
Step 2: Spend down immediately
- Get back under $2,000
- Buy things you need
- Pay bills in advance
- Don't give money away (that's a problem)
Allowable spend-down:
- Pay debts
- Buy household items you need
- Vehicle repairs (one vehicle exempt)
- Home repairs (home exempt)
- Prepay funeral expenses
Step 3: Report to SSA
- Tell them what happened
- Be honest about the situation
- Explain how it happened
- Show you're back under limit
Step 4: Document everything
- Save receipts for spending
- Keep bank statements
- Document the dates
- Show your current balance
Avoiding Overpayments
Before the 1st of each month:
- Check all account balances
- Include cash on hand
- Pay bills to reduce balance
- Buy needed items
Track your resources:
- All bank accounts count
- Cash counts
- PayPal/Venmo balances count
- Add them all together
Plan for windfalls:
- Tax refunds
- Gifts
- Back pay
- Spend down quickly and wisely
Set reminders:
- Check balance before 1st
- Monthly calendar reminder
- Use banking app alerts
- Stay vigilant
Dealing with Overpayment Notices
If you get an overpayment notice:
Review it carefully:
- What months are at issue?
- What amount do they say you owe?
- Is the information accurate?
- What are your options?
Your options:
- Pay it back
- Request waiver
- Request reconsideration (if you disagree)
- Request lower payment plan
Requesting a waiver:
- You weren't at fault, AND
- Repayment would deprive you of necessary living expenses
- Both conditions must be met
- Fill out SSA-632 form
Waiver grounds:
- You didn't understand the rules
- SSA gave you wrong information
- You reported correctly
- You can't afford to repay
If waiver denied:
- Can request reconsideration
- Then hearing if needed
- Get help from legal aid
- Don't give up if you have grounds
Repayment Options
If you must repay:
Lump sum:
- Pay entire amount at once
- Clears the debt immediately
- May be difficult on limited income
Benefit withholding:
- SSA takes from future benefits
- Usually 10% of benefit
- Can request lower amount
- Continues until paid
Payment plan:
- Pay set amount monthly
- Negotiate affordable amount
- Must be approved by SSA
- Document your expenses
Hardship:
- If payment causes hardship
- Can request lower withholding
- Show your expenses
- SSA must consider your situation
When It's Not Your Fault
SSA errors:
- SSA calculated wrong
- They had the right information
- It's their mistake
- Request waiver
You reported correctly:
- You told SSA about the resources
- They didn't act on it
- Not your fault
- Request waiver
Confusing rules:
- You didn't understand
- Rules are complex
- Honest misunderstanding
- May support waiver
Getting Help
Free help available:
- Legal aid organizations
- Disability rights groups
- Benefits counselors
- Some attorneys (contingency)
When to get help:
- Large overpayment
- Waiver denied
- You disagree with SSA
- Complex situation
How Purple Helps
Purple helps you avoid going over the limit:
- See your balance clearly anytime
- Track your resources easily
- Get alerts about your balance
- Get benefits early to pay bills
- Stay organized and in control
With Purple, you can track your balance and stay under the SSI limit.