The total amount an individual received for any period that exceeds the total amount that should have been paid to the individual for that period. For purposes of this section, an overpayment is defined by the entity paying the benefit and may include overpayments made to someone other than the individual whose benefits are withheld.

Counting unearned income twice.

Unearned income is all income that is not earned income. The types of unearned income affected by this policy are annuities, pensions, retirement, and disability benefits including:

Unearned income includes any part of a benefit (other than Supplemental Security Income (SSI)) that has been withheld to recover a previous overpayment.

The amount withheld to reduce a previous overpayment is not included when determining the amount of unearned income if double counting would result.

Double counting (i.e. counting unearned income twice) would result if:

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  The individual received both SSI and the other benefit (or deemed income using the other benefit) at the time the overpayment of the other benefit occurred; and

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  The overpaid amount was included in figuring the SSI payment.

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  The individual was determined ineligible for SSI based on countable income that included an overpayment amount; and

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  No SSI payment was received for the months the overpayment occurred.

If, after completing all development, you are unable to determine if the exception in SI 00830.110B.2. applies, do not include the amount being withheld to recover an overpayment when determining the amount of unearned income.

When two or more overpayments are being recovered at the same time, assume the overpayment recovery amount is first withheld to repay any overpayments not subject to the exception in SI 00830.110B.2. Apply this assumption regardless of the chronological order in which the overpayments occurred.

For example, an individual receiving title II was overpaid in 1999 and 2000. For purposes of collecting the overpayment, recovery is allocated in chronological order, i.e., the 1999 overpayment is satisfied first and then collection begins for the 2000 overpayment.

However, for the purposes of this policy, if the exception in SI 00830.110B.2. applies only to the 1999 overpayment, assume the 2000 overpayment is satisfied first. Apply the exception to the 1999 overpayment but only after the 2000 overpayment collection has been satisfied.

Joe Jones started receiving title II benefits and SSI payments in 1/23. In 11/23, Joe received a notice explaining that they was overpaid $150 in title II benefits from 4/23 through 8/23, and $30 would be withheld from their title II benefit to recover the overpayment from 1/24 through 5/24.

Since the overpaid amount was already included in determining countable unearned income for the period 4/23 through 8/23, the $30 a month being withheld is not included in determining the amount of unearned income when computing Joe's SSI payment amount for 1/24 through 5/24.

Alex Martin started receiving SSI payments and VA benefits in 5/23. Alex's monthly VA benefit increased to $360 in 8/23. The VA benefit increase, combined with other income, caused Alex to become ineligible for SSI payments beginning in 8/23. Alex continued to be ineligible until 1/24 when VA determined their benefit should have been $240 since 8/23. Therefore, Alex was overpaid a total of $600 by VA from 8/23 through 12/23.

Alex once again started receiving SSI payments in 1/24. To recover the VA overpayment, Alex's VA benefit is reduced by $120 a month from 3/24 through 7/24. Since Alex did not receive SSI payments during the time they was overpaid, the $120 a month withheld to recover the overpayment is included in determining the amount of Alex's current unearned income.

Alice Brown has been receiving SSI payments since 10/23. Alice's ineligible spouse has income that is subject to deeming. In 4/24, the ineligible spouse learns they incurred a $250 title II overpayment in 11/23. SSA recovers the overpayment by withholding $50 a month from the benefits the ineligible spouse receives from 6/24 through 10/24.

For deeming purposes, the amount of the ineligible spouse's current unearned income does not include the $50 a month withheld from the ineligible spouse's title II benefits since it has already been used in the deeming computation when SSI payments were paid for a prior period.

Mary Smith, who is married, has been receiving SSI payments since 12/22. Mary's ineligible spouse died in 2023. At the time of the ineligible spouse's death, the couple was separated. The ineligible spouse's income was never subject to deeming.

The ineligible spouse incurred a $100 title II overpayment in 11/22. Since Mary is also a title II beneficiary, SSA recovers the ineligible spouse's overpayment by withholding $50 a month from Mary's benefits in 3/24 and 4/24. Since none of the ineligible spouse's income was subject to deeming when the overpayment occurred, the claims specialist includes the $50 a month withheld from Mary's title II benefit when determining the amount of Mary's current unearned income.