Returning Social Security Payments
Social security is simple at its surface. Pay into the system when you work, receive payments when you finish working.
But did you know you may have to return money to social security when your spouse dies?
Social security benefits are paid monthly. Benefits earned in a month are paid the following month. For example, benefits earned in July are paid in August.
Social security recipients must be alive the entire month in order to receive payment.
They are not paid for the month of the death.
So if someone dies on the last day of the month, they are not eligible for payment for that entire month.
If SSA was not notified of the death, or was not able to stop the payment in time, the family is responsible for returning the money to the SSA.
This payment can be easy to overlook, especially if the account in which the money was deposited was already closed.
Maintaining a list of income sources and deposit accounts is a great way to avoid issues with overpaid social security.
You can download a template to get started tracking this critical information below.