Overpayment of social security
I retired on June 30, 2022. I was a 12 month school secretary so I received vacation days. In my 33 years of working I accumulated 50.96 unused vacation time. I received a check for those unused vacation days in the amount of $11,097.56.
One year of retirement and Social Security sends a letter stating my vacation check was actual income. I filled out Form SSA561-U2. In the past 3 years I have called numerous times, I have visited the Chicago Heights office, all they say is they see my file and it’s under review. On June 3, 2025 I received a letter from SSI that my benefits would be reduced by $209.80 per my agreed upon payment plan.
I NEVER agreed to a payment plan. My vacation check is not income, their form SSA-561-U2 clearly states that. Can you please point me in the direction of someone I can talk to that will on the spot rectify this for me?
Thank you
I listen to you on WGN and I know you are frustrated with SSI too!
Terry Says
According to my co-author of “Social Security Horror Stories” your vacation pay DOES count as income. Read this article he wrote:
https://www.forbes.com/sites/kotlikoff/2020/11/19/ask-larry-do-my-severance-pay-pto–vacation-pay-count-as-earned-income-for-social-security/
But I don’t see why that would create an overpayment of SS benefits — unless you started collecting benefits before your full retirement age. In that case, benefits are reduced by $2 for every dollar you earn.
