SSA Overpayment Plan in Place - Will They Still Take My Tax Refund?

Unfortunately, having a payment plan with SSA doesn't automatically protect your tax refund from offset. Here's what you need to know: • The Treasury Offset Program (TOP) can still take your refund even with a payment plan • SSA and Treasury don't always communicate quickly about payment arrangements • If your debt was already certified for offset before your payment plan, it's likely to be taken • The cutoff date for certification is usually around January each year • You might be eligible for a hardship exemption given your caregiver status I went through this exact situation last year and lost my entire refund despite making payments for 3 months!

According to the SSA Program Operations Manual System (POMS) section SI 02220.012, having a repayment plan in place doesn't automatically prevent tax refund interception. Under 31 CFR § 285.4, the Treasury Department can still offset your refund unless you received specific confirmation that your debt was removed from the Treasury Offset Program database. I understand how stressful this situation is. When caring for a family member, financial predictability becomes even more crucial. In my experience, you should contact SSA directly to request a written confirmation that your debt has been marked as "not subject to offset" in their system.

I was probably in a somewhat similar situation last year with an SSA overpayment. After maybe 6-7 attempts calling their regular number and waiting for literally hours, I finally used Claimyr (https://youtu.be/_kiP6q8DX5c) to get through to an actual SSA agent. They were able to check if my debt was already certified for offset and gave me options I didn't know existed. The agent explained that I could possibly qualify for an expedited hardship review given my caregiver status, which might prevent the offset if processed quickly enough. It's definitely worth the call to find out your specific situation, since the rules are kind of complicated and vary case by case.

I managed to save my refund last year in a similar situation! My mom was on SSI and had an overpayment, and I was her designated payee. I found out about the potential offset in January, so I immediately went to my local SSA office with documentation of her medical expenses. The key was filing Form SSA-632 (Request for Waiver) AND Form SSA-634 (Request for Change in Repayment Rate). I explained our situation, showed proof of the payment plan, and emphasized that we were already making regular payments. The agent put a note in the system, and my refund came through untouched about 3 weeks later. Have you visited your local office in person? Sometimes that works better than phone calls.

WATCH OUT! Even with a payment plan, they took my entire refund last year! I had been making payments for 6 months, and nobody warned me that my tax refund was still at risk. It was a complete shock when my refund never showed up, and when I called, they just said "Your refund was applied to your SSA debt" like it was no big deal. $3,200 gone just like that!

I'm so sorry you're going through this while caring for your mother! ❤️ The system can be incredibly frustrating and confusing. From what I understand, SSA is supposed to send you a Notice of Intent to Offset before they take your refund, but these notices don't always arrive in time. I'd suggest immediately requesting a hardship waiver based on your caregiver status. The key is to act quickly! I felt so helpless when dealing with my own overpayment situation, but persistence really does pay off. Don't give up - there are people at SSA who can help if you reach the right department.

Have you checked if your refund has already been processed? If it hasn't been issued yet, you might still have time to act. Call the Treasury Offset Program directly at 1-800-304-3107 to see if your debt is listed for offset. In my case, I lost half my refund last year despite having a payment plan. The SSA told me after the fact that I needed to specifically request an exemption from offset, which is different from setting up a payment plan. Do you know exactly how much you owe in total? Is the payment plan paying off the full amount within 36 months? These details can affect whether they'll take your refund.

I'm really sorry you're dealing with this stress while caring for your mother. Based on what others have shared here, it sounds like you need to take immediate action since payment plans don't automatically protect your refund from offset. Here's what I'd recommend doing RIGHT NOW: 1. Call the Treasury Offset Program at 800-304-3107 to check if your debt is already certified for offset 2. Contact SSA immediately to request Form SSA-632 (Request for Waiver of Overpayment Recovery) - emphasize your caregiver hardship situation 3. Ask SSA specifically to suspend your debt from the Treasury Offset Program database 4. Get everything in writing - confirmation numbers, agent names, dates The fact that you've been making consistent $85 payments since April shows good faith, but unfortunately the systems don't always communicate with each other quickly. Given that your overpayment was determined in March 2024 and you filed your taxes in February 2024, there's a real risk your refund could be intercepted. Don't wait - every day counts here. If your refund hasn't been processed yet, you might still have time to prevent the offset. Document everything and be persistent with your calls. Your mother's medical needs definitely qualify as a hardship situation that SSA should consider.

I went through almost the exact same situation last year! SSA determined I had an overpayment in February 2023, I set up a payment plan in March, and was faithfully making my monthly payments. I thought I was all set - until my entire $2,800 refund disappeared in April. Here's what I learned the hard way: SSA certified my debt for offset BEFORE I set up the payment plan, and once it's in the Treasury system, it's like a runaway train. The payment plan doesn't automatically remove you from the offset list. What saved me was filing an emergency hardship appeal. I had to provide documentation showing that losing the refund would cause severe financial hardship. Since you're caring for your mother and need the money for her medical equipment, you have a strong hardship case. Call SSA immediately and ask them to place an "urgent hardship hold" on your offset while you file Form SSA-632. I also called the Treasury Offset Program directly to confirm my debt status. It took about 6 weeks, but I eventually got my refund back through the hardship process. Don't give up - the fact that you've been making consistent payments shows good faith, and your mother's medical needs should qualify for hardship consideration. Act fast though!

I'm dealing with a very similar situation right now! My SSA overpayment was determined in January 2024, and I've been on a payment plan since February, making $75 monthly payments religiously. When I called SSA last week specifically about tax refund offset, the representative told me something crucial that I wish I had known earlier. She explained that there are actually TWO separate processes: 1) Your payment plan with SSA, and 2) The Treasury Offset Program certification. These don't automatically sync up! Even though you're making payments, your debt might have already been sent to Treasury for offset before your March payment plan was established. The good news is that you can request what's called a "suspension of offset" even after certification. I had to specifically ask for this - it's not something they volunteer. The key phrase to use when calling is "I need to request a suspension of my debt from the Treasury Offset Program due to financial hardship." Given that you're caring for your mother and need the refund for her medical equipment, you have a strong hardship case. I'd also recommend calling the IRS at 1-800-829-1040 to check the status of your refund - if it hasn't been processed yet, you might still have time to prevent the offset. Document everything, get confirmation numbers, and don't let them brush you off. Your situation with your mother's medical needs is exactly the type of hardship these programs are supposed to accommodate.

I'm in a nearly identical situation and just went through this process last month! Here's what worked for me: **Immediate Actions (do these TODAY):** 1. Call Treasury Offset Program at 800-304-3107 - they'll tell you if your debt is certified for offset 2. Call SSA at 800-772-1213 and say "I need to request an immediate suspension of my debt from Treasury Offset Program due to caregiver hardship" 3. Ask them to check the "offset indicator" in your account **Key Documents to Request:** - Form SSA-632 (Waiver of Overpayment Recovery) - Form SSA-634 (Change in Repayment Rate) - Written confirmation that your debt is suspended from TOP **What I learned:** The March 2024 overpayment determination means your debt was likely certified for offset around that same time, BEFORE your payment plan started. Payment plans don't automatically prevent offsets - you need a separate "suspension" request. **Your advantages:** - Consistent $85 monthly payments show good faith - Caregiver status for mother's medical needs = strong hardship case - You have documentation and confirmation numbers I was able to get my suspension processed in about 10 days by emphasizing the medical hardship angle and providing payment history as proof of compliance. Don't let them tell you "payment plans prevent offsets" - that's not accurate. You need the specific suspension. Stay persistent and use the exact phrase "suspension from Treasury Offset Program." Good luck!