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Will the SSA Seize Tax Refunds?

According to an audit by the SSA’s Inspector General, the agency has confiscated around $75 million in tax refunds without giving much of an explanation to many of these individuals.

Last year, when the SSA seized tax returns due to benefit overpayment (overpayment to a lot of these individuals’ parents, no less), officials said they would cease this kind of action. Yet it appears some 300,000 Americans have been affected this year, too—often as the result of overpayments from years ago.

The audit further reveals that the majority of the confiscations occurred for individuals 21-40 years of age. At least eight thousand received no notification before their tax refund was taken.

While this is unfortunate for those who lost their tax refund, especially due to their parents’ overpayments, we hope the SSA will at least provide proper notification in the future so those affected can anticipate and prepare accordingly. If this has happened to you, you should contact the SSA for a detailed explanation.

At Jan Dils, Attorneys at Law, our experienced Social Security Disability Lawyers can guide you through the process of applying for SSA benefits or appealing a denied claim. Contact us to schedule your free initial consultation – we will fight for the benefits you deserve!