How to handle disability overpayments in Colorado?
By Hogan Smith
Updated 05/13/2025
If you are receiving Social Security Disability benefits in Colorado, you could face an overpayment situation if the Social Security Administration (SSA) determines that you were paid more benefits than you were entitled to receive. Overpayments can happen for various reasons, and it's essential to handle them carefully to avoid further financial complications. This guide explains how to handle disability overpayments in Colorado and the steps you can take to resolve them.
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What Causes Disability Overpayments in Colorado?
Overpayments can occur when:
- Your medical condition improves, and you are no longer considered disabled.
- You return to work and earn above the Substantial Gainful Activity (SGA) limit.
- You fail to report income or changes in living arrangements (especially for SSI recipients).
- Administrative errors made by the SSA.
The SSA will send you a notice detailing the overpayment amount, why it occurred, and your options.
Steps to Handle Disability Overpayments in Colorado
Step 1: Review the Overpayment Notice Carefully
- Ensure the information is accurate.
- Check the overpayment period and the stated reason.
- If you believe there is an error, you have the right to challenge it.
Step 2: Request Reconsideration if You Disagree
- If you disagree with the overpayment decision or the amount, you can file a Request for Reconsideration (Form SSA-561-U2).
- This must be submitted within 60 days of the date on your overpayment notice.
Step 3: Request a Waiver if You Cannot Repay
You can request a waiver of overpayment recovery (Form SSA-632-BK) if:
- The overpayment was not your fault.
- Repaying it would cause financial hardship.
No deadline exists for requesting a waiver, but it’s best to do it promptly.
Step 4: Arrange a Payment Plan if Needed
- If the overpayment is correct but you cannot pay it all at once, you can request a monthly payment arrangement.
- Contact your local SSA office to set up a plan that fits your financial situation.
Step 5: Stay Organized and Document Everything
- Keep copies of all letters, forms, and communications.
- Respond promptly to any SSA correspondence to avoid further actions like benefit withholding.
Consequences of Not Addressing Overpayments
If you ignore an overpayment notice:
- The SSA can withhold your entire monthly benefit until the overpayment is recovered.
- Your federal tax refund may be intercepted.
- Other collection methods may be used, including garnishments.
That’s why it’s critical to address overpayments immediately and seek help if you need it.
How Hogan Smith Can Help
Dealing with disability overpayments in Colorado can be stressful and confusing. At Hogan Smith, we assist individuals in:
- Reviewing overpayment notices for accuracy and fairness.
- Filing appeals or waiver requests to challenge or reduce overpayments.
- Negotiating repayment plans that are manageable and within SSA guidelines.
Contact Hogan Smith Today
If you are dealing with a
disability overpayment in Colorado, don’t face it alone.
Contact Hogan Smith today for a free consultation. We’ll help you protect your benefits, explore your appeal or waiver options, and take the stress out of handling SSA overpayments.
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