How To Avoid (And Handle) Overpayments With Ticket To Work

Imagine working hard to regain financial independence, only to receive a notice from the Social Security Administration (SSA) stating that you owe money back. This can be a frustrating and confusing situation, especially if you weren’t expecting it.

Overpayments in the Ticket To Work (TTW) Program occur when the SSA determines that you have received more benefits than you were entitled to. These overpayments can cause stress, but they can often be prevented with careful planning and timely reporting. Understanding what causes overpayments and how to handle them ensures a smoother transition back to work while protecting your financial stability.

What Is An Overpayment? 

An overpayment happens when the SSA gives you more money than you should have received for a particular period. This applies to both Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) beneficiaries who are participating in TTW.

Many people assume that SSA payments are always accurate, but errors can happen for various reasons. Overpayments are typically found through SSA’s regular review process, and if one happens they send a formal notice. While TTW provides work incentives which help manage and protect your benefits, you are still responsible for reporting income and other changes.

Key Reasons Which Cause Overpayments

Overpayments can happen for several different reasons.

Earning Too Much Income 

• For SSDI recipients: The Trial Work Period (TWP) allows you to test working for nine months without losing benefits. However, after this period, if your earnings exceed the Substantial Gainful Activity (SGA) limit ($1,620/month in 2025), your benefits may be suspended. If benefits continue despite exceeding the SGA limit, an overpayment will occur.
• For SSI recipients: As part of Income Exclusions, SSA disregards the first $85 of gross wages. Beyond that, your SSI benefits are reduced by $1 for every $2 earned. If you do not report your earnings properly, SSA may continue issuing full payments, leading to an overpayment.

Exceeding Resource Limits (SSI only)

There is a $2,000 resource limit ($3,000 for couples) for SSI recipients. If you receive SSI and your bank account, savings or other countable assets exceed this limit without an adjustment to your benefits, you may receive an overpayment.

Failure to Report Changes in a Timely Manner 

SSA requires you to report changes in income, work status, living arrangements and medical conditions promptly. Situations that can lead to overpayments include:

• Getting a job but not reporting it immediately.
• Medical improvement that causes SSA to decide you are no longer disabled.
• Moving to a new living arrangement that affects SSI eligibility.

Oversights by the SSA 

The SSA can make mistakes in benefit calculations or delay updates to your records. Even though you are not at fault, they will still seek repayment.

How To Prevent Overpayments 

To reduce the risk of overpayments, use the following best practices all the time.

First and foremost, report your income and work status to the SSA using your “my Social Security account,” phone or in-person visits. Make it a habit to report every month, even if your earnings go up and down.

Next, keep detailed records of all your earnings and communication, including pay stubs, work schedules and any correspondence with SSA. These are very important if there’s any dispute regarding your benefits.

Also make sure to understand SSA's work incentives and reporting requirements. Learn about program rules such as the Trial Work Period (TWP), Expedited Reinstatement (EXR) and Extended Period of Eligibility (EPE) as these can affect your benefits. Working with an Employment Network (EN) like Allsup Employment Services (AES) can provide valuable assistance in handling these complex rules.

Finally, maintain regular communication with both SSA and your EN. Review your SSA earnings records on a routine basis for any problems and discuss with your EN about how to comply with SSA's regulations.

What To Do If You Receive An Overpayment Notice 

If you receive an overpayment notice, take the following steps to handle it properly.

When the SSA sends a letter about the overpayment amount, reason and repayment options, carefully review the information. Pay close attention to the dates of overpayment, the amount SSA claims you owe and the specific reason for the overpayment.

After receiving this notice, it's important to review SSA's calculations and compare them with your own records. If you believe their calculation is incorrect, you should address it right away.

You have several options for responding to an overpayment notice.

• Request a Reconsideration (Appeal) – Use this option if you believe the overpayment calculation is wrong.
• Request a Waiver – This is best if you cannot afford to repay the amount and the overpayment wasn't your fault.
• Negotiate a Repayment Plan – If you agree that an overpayment occurred but need more time to repay, you can make arrangements with the SSA.

The Benefit Of Expert Support 

Overpayments often happen because the SSA’s rules are complex. Working with an EN can help avoid overpayments. Many people avoid overpayments by getting this expert assistance.

An EN like Allsup Employment Services (AES) provides expert guidance on many things, including reporting. You are responsible for reporting directly to SSA, however AES helps advise on how to report accurately and on time. AES also helps you track work incentives and benefits eligibility, and facilitate direct communication with SSA to resolve any issues that may arise. This support is valuable in preventing overpayment situations and resolving any current ones.

If you receive an overpayment notice, don’t panic. Review the details, appeal if necessary and negotiate a repayment plan if needed. Working with AES as your assigned EN can help you avoid hitting overpayment status and stay within the rules.

Returning To Work With Allsup Employment Services

Allsup Employment Services (AES) is an SSA-authorized EN for the Ticket To Work Program. We have over 10 years of experience helping thousands return to work successfully. We can help guide you through the SSDI work incentives on your return-to-work journey.

The Ticket To Work Program helps you protect your SSA disability benefits, and working with AES you can:

• Earn More. Make as much income as you choose during the Trial Work Period and protect your full SSDI benefits.
• Stress Less. Avoid medical disability reviews and the worry that comes with them.
• Keep Medicare. While working, you can keep Medicare for over seven years.
• Avoid Risk. If you stop working anytime within five years, your SSDI benefits can resume through a reinstatement process.
• Pay Nothing. As a Social Security-authorized Employment Network, our services are provided at no cost.

Choosing AES means working with an EN who’s focused on your goals and will work with you every step of the way.

Get started with no cost and no obligation.

You can reach Allsup Employment Services today by calling 866-540-5105 or requesting a call.