These past few months have been a confusing time for many people who receive Social Security payments. Lots of changes in policies and now a new national tax and spending plan have kept recipients guessing. One man in Ohio got contradicting letters from SSA and needed help.
Mel Davis, 72, had to pore over his recent letters from Social Security.
“That didn’t add up, didn’t add up,” he said.
THE DUELING LETTERS
He said for years his Social Security payments went straight to his Medicare premiums, and at the end of each year, he’d pay the difference if he owed. A recent letter said he had overpaid and would get a refund.
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However, another letter said he would be getting a lump sum SSA payment for 2024 and six months of 2025, but then said he owed close to $3,200 for Medicare payments.
“It was very troubling, confusing, frustrating,” said Davis.
So, in this case of dueling letters, Davis said he went to his local Social Security office. He said the woman who helped him was kind and professional, but in the end, she said he still owed nearly $3,200.
'CHAOS' AT SOCIAL SECURITY SAYS EXPERT
“The chaos there. I’ve never seen anything like this,” said Martha Shedden about all the confusion over SSA.
She’s the president and co-founder of the National Association of Registered Social Security Analysts, or NARSSA. It helps educate professionals and consumers about the many ins and outs of Social Security to maximize people’s benefits.
Shedden said her customers have been particularly upset by the employee cutbacks at SSA. She also said people were baffled by changes to clawbacks. That’s when SSA takes back what people owe. It’s gone from 10% to 100% to now 50% until the debt is paid.
“They come out with something and then change their mind,” said Shedden. “That contributes to all the chaos.”
Meanwhile, on July 3, emails and a press release from SSA said President Donald Trump’s new tax and spending plan means “…90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits…” However, that’s come under fire.
Shedden said for people over the age of 65, there’s a nice, new deduction of $6,000 for individuals and $12,000 for couples, but that lasts three years and there’s a sliding scale of the deduction based on how much you earn.
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“The confusion around that was crazy. I mean it still is,” said Shedden.
LOCAL SOCIAL SECURITY REP HELPS MEL
For Davis’ case, he wasn’t getting answers. So we contacted SSA, and then he got a call from a local Social Security representative.
“Wanted to reassure me that I would not have to have any additional payments for August,” Davis told us.
He said it’s all a step in the right direction.
This article was written by Jonathan Walsh for the Scripps News Group in Cleveland.
