The Ottumwa Courier

AP National

April 15, 2014

People with old Social Security debts get reprieve

(Continued)

After Colvin's announcement, Boxer said in a statement, "I am grateful that the Social Security Administration has chosen not to penalize innocent Americans while the agency determines a fair path forward on how to handle past errors."

There are several scenarios in which people may have received overpayments as children. For example, when a parent of a minor child dies, the child may be eligible for survivor's benefits, which are often sent to the surviving parent or guardian.

If there was an overpayment made on behalf of the child, that child could be held liable years later, as an adult.

Also, if a child is disabled, he or she may receive overpayments. Those overpayments would typically be taken out of current payments, once they are discovered.

But if disability payments were discontinued because the child's condition improved, Social Security could try to recoup the overpayments years later.

"We want to assure the public that we do not seek restitution through tax refund offset in cases when the debt in question was established prior to the debtor turning 18 years of age," Social Security spokesman Mark Hinkle said in an email. "Also, we do not use tax refund offset to collect the debt of a person's relative. We only use it to collect the overpaid benefits the person received for himself or herself."

Hinkle said the debt collection could be waived if the person was without fault and repayment would "deprive the person of income needed for ordinary living expenses or would be unfair for another reason."

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