How do I know if I have an unexpected Social Security deposit in 2022 with the COLA increase?

The Social Security Administration has announced the 2023 Cost of Living Adjustment (COLA) to prevent benefits from losing purchasing power in the face of rising prices. High inflation in previous months has made the increase in monthly payments next year the highest since 1981 and the fourth largest on record.

Depending on the month for which a payment is made, you may see two payments deposited in the same month, this is not an error, but simply the result of how the Social Security payment schedule works. However, social security overpayments may occur and the reasons may vary, but do not worry.

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Unexpected social security deposits

Social Security Administration sends benefit payments to more than 70 million Americans each month, a monumental task. In order to make deposits more efficiently, payments are staggered throughout each month on a timeline based on recipients’ dates of birth, type of benefit, and/or when a recipient applied to start receiving social security.

Beneficiaries who receiving both Supplemental Support Income (SSI) and Social Security benefits can be paid twice a month. SSI payments are generally issued on the first of the month, and Social Security payments for recipients who enrolled before May 1997 or who are also receiving SSI are generally deposited on the third of the month.

However, depending on the month, these deposits could fall on the same day. If the first or third falls on a Saturday, Sunday, or federal holiday, payments are advanced. As a result, SSI payments are sometimes paid the month before the month for which they are made.

In 2022it was scheduled for SSI payments in April, September and December. This will happen four times in 2023occurring in March, June, September and December. The second SSI payment in December of each year may be higher than the first according to the Social Security Administration’s calculation for their monthly benefit.

With the 8.7% increase in COLA in 2023, eligible individuals will have a new maximum monthly federal SSI amount of $914, an increase of $73 from 2022. The maximum amount for eligible couples will increase from $110 to $1,371.

Overpayments to Social Security

Common situations in which an overpayment may be made if a beneficiary does not provide information to the Social Security Administration this could change the monthly amount to which they are entitled. This is particularly the case for recipients of SSI and disability benefits (SSDI).

The two programs have different rules creating distinct situations in which a beneficiary could receive money that they were not eligible to receive. However, one factor they have in common is that recipients must declare their salary. This should be done within the first 6 days of the calendar month to reduce the risk of overpayments occurring.

Intentionally withholding information from the Social Security Administration is also no joke, do so to continue receiving payments could lead to criminal prosecution. Either way, the Social Security Administration will send you a letter telling you if there has been an overpayment. If you think there was an error on the agency’s part, you can check your payments you received by contacting the agency or checking online and appeal the overpayment decision. If you need to pay back any excess money you received, you can arrange to repay it in installments.

There are several ways to contact the Social Security Administration, but the fastest and easiest way for most is through the online portal. If you wish to use the “my Social Security” application, the SSA telephone service or the mobile application to declare your wages, the agency advises calling your local office and speaking to a representative.

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