SSI Fair Share housing deduction ignored but they're demanding back pay for wages - What now?

I've dealt with similar SSI reporting issues with my daughter. You need to request a formal reconsideration immediately - you have 60 days from the date on that letter. While I know it's incredibly frustrating, continue documenting everything: 1. Get a receipt confirmation for every fax you send (date/time stamped) 2. Keep a call log with dates, times, and representative names 3. Take screenshots of any app/online errors The key issue here is that they're applying the wage reductions but not the fair share housing arrangement, which should have increased his base SSI amount. The housing arrangement change should have been processed first chronologically. I recommend sending a certified letter to your local office explaining the timeline of events and requesting both the back-processing of the fair share arrangement AND removal of any overpayment claims until the fair share is properly applied. Include copies (never originals) of all your previous documentation.

OMG this is EXACTLY what happened with my brother's SSI!!! They ignored the fair share housing arrangement for FIVE MONTHS while still reducing for his tiny paychecks. We ended up with a $2,800 overpayment notice even though we'd reported everything correctly. The system is BROKEN and they don't talk to each other internally!!! I'm still fighting this battle from last year!

I work as a benefits counselor, and unfortunately this is a common issue with SSI. The problem is that wage reporting and living arrangement changes are often processed by different departments within SSA, and they don't always coordinate effectively. Your next steps should be: 1. Request a reconsideration of the overpayment immediately (form SSA-561) 2. At the same time, file a request for waiver of overpayment (form SSA-632) arguing you reported everything correctly 3. File a critical case request due to potential financial hardship Most importantly - *do not begin repaying* until this is resolved. Filing the reconsideration stops collection efforts temporarily. The fair share arrangement should have resulted in your son receiving the full Federal Benefit Rate (minus any applicable deductions) rather than the reduced benefit from in-kind support and maintenance. This difference is significant - about $287 in 2025.

I spent 4 months dealing with this exact problem last year. After dozens of failed calls, I finally used Claimyr (claimyr.com) to reach a real person at SSA. It got me through to an agent in under 30 minutes when I'd been trying for weeks. Their video demo (https://youtu.be/Z-BRbJw3puU) shows how it works. Once I finally got through to someone, I requested to speak with a technical expert who specializes in SSI calculations. Regular reps often don't understand how the living arrangement codes interact with wage deductions. The technical expert was able to see both issues and process them in the correct order, which eliminated our alleged overpayment entirely. Don't give up - this is fixable, but you need to reach someone who actually understands the complete SSI calculation system.

bro this happened to my cousin too. SSA is mess rn with all this stuff. they never put in his living change but took the job money. he had to get his state rep involved to fix it all.

This sounds extremely frustrating. You've clearly been doing everything right in terms of reporting. One thing to consider is requesting your son's complete SSI file through a Freedom of Information Act (FOIA) request. This will let you see exactly what's been logged in the system and what's missing. I've found that SSA's internal systems sometimes don't properly code the living arrangement change from "in-kind support and maintenance" (ISM) to "fair share," especially when submitted via fax. The system uses specific codes: - Code A: Fair share arrangement (full FBR) - Code B: In-kind support (reduced FBR) Sometimes these codes don't get updated even when the documentation is received. When you eventually reach someone, specifically ask them to check what living arrangement code is currently in your son's record. If it's still showing Code B instead of Code A, that's your problem. In the meantime, file that reconsideration form ASAP!

have u tried contacing your congressperson? My sister had a mess with SSI that was going on for months and nothing worked until she called our rep's office. They have caseworkers who deal with SS problems and got it fixed in 2 weeks when we couldnt fix it for 6 months!!!

One more thing to clarify about SSI fair share arrangements: When your son pays his fair share of household expenses, he should receive the full SSI Federal Benefit Rate (currently $943/month in 2025) before any deductions for wages. For his wages, SSI has a specific calculation: - They disregard the first $85 in monthly earnings - Then reduce SSI by $1 for every $2 earned above that So if he works 12 hours weekly at say $15/hour, that's about $780/month. The countable income would be $695 ($780-$85), and the reduction would be $347.50 (half of $695). His SSI should be approximately $595.50 ($943-$347.50) if everything is calculated correctly with the fair share arrangement. If he's receiving significantly less, that confirms they haven't properly coded his living arrangement. If your reconsideration doesn't resolve this quickly, consider requesting an informal conference with a technical expert rather than just a case review.

Just a warning - even when you get this fixed, be prepared for a mess. When they finally fixed my brother's case, they issued back payments for the months they had incorrectly reduced his benefits, but then sent ANOTHER letter a month later claiming those back payments were issued in error!!! It took another 3 months to sort that out. Save EVERY letter they send you.