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.