Not reporting changes to Social Security can lead to serious problems - from overpayments you'll have to repay to potential fraud charges. Here's what you need to know.
What Changes Must You Report?
For SSI recipients, you must report:
- Any income (wages, self-employment, gifts over $20)
- Changes in living situation
- Changes in household composition
- Marriage, divorce, or separation
- Resources over $2,000 ($3,000 for couples)
- Leaving the country
- Changes in citizenship or immigration status
- Entering or leaving an institution
For SSDI recipients, you must report:
- Starting or stopping work
- Changes in earnings
- Improvement in medical condition
- Incarceration
- Leaving the country for 30+ days
- Changes in marital status
- Workers' compensation or public disability payments
Reporting deadline: Most changes must be reported within 10 days.
What Happens If You Don't Report?
1. Overpayments
The most common consequence:
- SSA calculates what you should have received
- Compares to what you actually received
- The difference becomes an overpayment
- You must pay it back
Example:
- You start a part-time job earning $500/month
- Don't report for 6 months
- SSA discovers it during review
- You may owe $2,000-$3,000 in overpayments
2. Benefit Reduction or Termination
SSA may:
- Reduce your monthly benefit
- Suspend your benefits entirely
- Terminate your eligibility
- Require you to reapply
This depends on:
- What change wasn't reported
- How long it went unreported
- Whether it affects your eligibility
3. Recovery of Overpayments
How SSA collects:
- Withhold from future benefits (up to 10% of SSI, 100% of SSDI)
- Tax refund offset
- Wage garnishment
- Treasury collection
- Report to credit bureaus
The debt doesn't go away:
- No statute of limitations
- Can follow you for years
- May affect other government benefits
4. Fraud Investigation
If SSA suspects intentional fraud:
- Office of Inspector General investigation
- Review of all your records
- Interviews with you and others
- Possible criminal referral
Penalties for fraud:
- Fines up to $250,000
- Prison time up to 5 years
- Permanent benefit disqualification
- Repayment of all fraudulent benefits
5. Sanctions and Penalties
For SSI, failing to report can result in:
- First offense: 6-month payment suspension
- Second offense: 12-month suspension
- Third offense: 24-month suspension
These are in addition to:
- Repaying the overpayment
- Any fraud penalties
Common Situations That Cause Problems
Unreported Work
What happens:
- SSA discovers work through tax records or wage reports
- Calculates months you earned over limits
- Creates overpayment for all those months
The delay makes it worse:
- You might not hear anything for 1-2 years
- Then suddenly owe thousands
- Interest doesn't accrue, but the amount is still large
Unreported Living Situation Changes
For SSI:
- Moving in with someone who provides support
- Having someone move in with you
- Living rent-free or getting free food
Consequences:
- In-kind support and maintenance (ISM) affects benefits
- Can reduce SSI by up to 1/3
- Unreported ISM creates overpayments
Unreported Resources
Common issues:
- Inheritance you didn't report
- Account balance going over $2,000
- Receiving a lump sum (settlement, back pay, gift)
What happens:
- SSI is suspended for months you were over the limit
- You must repay benefits for those months
- Must spend down to regain eligibility
Unreported Marriage or Divorce
This affects:
- SSI resource and income limits
- SSDI auxiliary benefits
- Medicare/Medicaid eligibility
- Benefit amounts
What to Do If You Haven't Reported
Report It Now
Even if it's late:
- Call SSA at 1-800-772-1213
- Visit your local office
- Report through my Social Security account
The sooner, the better:
- Limits the overpayment amount
- Shows good faith
- May reduce penalties
Gather Documentation
Collect records of:
- When the change occurred
- What you reported (if anything)
- Your income, resources, living situation
- Any circumstances that affected reporting
Request a Waiver
If you receive an overpayment notice:
- You can request a waiver
- Must show: not your fault AND can't afford to repay
- File within 30 days of notice for continued benefits
Waiver criteria:
- You weren't at fault for the overpayment
- Repayment would deprive you of necessary living expenses
- Repayment would be unfair for another reason
Appeal If You Disagree
You can appeal if:
- You believe the overpayment amount is wrong
- You reported the change but SSA lost it
- The change didn't actually affect your benefits
Appeal levels:
- Reconsideration
- Hearing before an ALJ
- Appeals Council
- Federal court
How to Avoid Problems
Set Up Reminders
Report immediately when:
- You start or stop working
- Your income changes
- You move or someone moves in/out
- Your bank balance approaches $2,000
- You get married or divorced
- You receive any lump sum
Keep Records
Document everything:
- Date you reported
- Who you spoke to
- Confirmation numbers
- Copies of forms submitted
Use Wage Reporting
For SSI:
- SSI Telephone Wage Reporting: 1-866-772-0953
- my Social Security online
- SSI Mobile Wage Reporting app
Report monthly income by the 6th of the following month.
Understand Your Obligations
Read your award letter:
- Lists what you must report
- Explains deadlines
- Describes consequences
Ask questions:
- If unsure whether to report, report it
- Better to over-report than under-report
- SSA can't penalize you for reporting
Getting Help
Free resources:
- Benefits counselors
- Work Incentives Planning and Assistance (WIPA)
- Legal aid organizations
- Disability rights groups
If facing an overpayment:
- Request waiver immediately
- Seek legal help if amount is large
- Don't ignore notices
How Purple Helps
Purple makes it easier to track your finances and avoid reporting problems:
- Clear transaction history for accurate income reporting
- Balance tracking to stay under SSI limits
- Get benefits up to 4 days early
- Simple statements for SSA documentation
When you know exactly what's in your account, reporting to SSA becomes straightforward.