Can IRS take SSDI overpayments out of refund if SSDI is not taking agreed upon re-payment amount out of co-worker's work check?

[FosterDog]

Hi all,

I am a Resource Coordinator for a retail employer and have a team member that is asking me this question. Three of my co-workers have been hit with "overpayments" by SA through SSDI program. They now all have to pay it back, some up to $50,000. (I don't know where they get these numbers...)

ANYWAY, the team member in question agreed with SSDI many months ago that they could take out $50 per SSDI payment to begin satisfying the pay back. There have been NO reductions in her SSDI payments and TM is now concerned IRS will take amount out of her refund.

What are our options besides seeking free IRS and SSDI organizations to help her?

Thank you very much in advance for your responses.

[Vanessa A]

Yes, the Social Security administration can garnish their tax refund for overpayments. Whether they will or not, they would have to contact them to find out.  

Basically, any other federal government agency has the ability to garnish a refund. 

[FosterDog]

Hello Vanessa! Thank you kindly for your prompt response, it is appreciated. I think she will need to contact SSDI and ask about why the payment agreement she made with them to begin paying back the overpayment has not been started (though that was agreed upon many months ago). Then ask them if enacting the agreement will protect her from IRS taking from her refund. Would you agree?

[Vanessa A]

Yes, I would agree with that.