Social Security Debt: Do You Owe and Should You Worry?
Social Security is a vital part of people's financial security. But some recipients received overpayments in the past, and the Social Security Administration has historically gone after those people -- and even their family members -- to recoup that money by garnishing tax refunds and other controversial practices.
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at the Social Security Administration's practice in collecting debts. Dan notes that the SSA identified 400,000 people who owe a total of more than $700 million, and has thus far collected about $55 million by seizing tax refunds. But lawmakers are now questioning the fairness of this practice, especially when it involves taking money initially paid to other family members years ago. Dan runs through some of the reasons why you might owe money to the SSA, and while he points out that the SSA has suspended its debt-collection practice pending more investigation, that's no guarantee that you won't have to pay back overpaid benefits at some future time.
How to get even more income during retirement
Social Security plays a key role in your financial security, but it's not the only way to boost your retirement income. In our brand-new free report, our retirement experts give their insight on a simple strategy to take advantage of a little-known IRS rule that can help ensure a more comfortable retirement for you and your family. Click here to get your copy today.
Have general questions about Social Security? Email them to SocialSecurity@fool.com, and they might be the subject of a future video!
The article Social Security Debt: Do You Owe and Should You Worry? originally appeared on Fool.com.Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.