Q&A: SS Overpayment

Question:  I have a multifamily tenant whose SSI was lowered due to a stock or bond that was in her name.  The tenant stated that someone else had bought it for her and she was unaware of it.  Her SSI was lowered for the next year due to the overpayment.  My question is, do I report the full amount or the amount that she is receiving?
~ Steph in Texas

Answer:  This situation occurs when Social Security has paid a benefit amount that’s too high, due to information they didn’t have at the time the tenant’s benefit amount was determined.  In this case, Social Security identified an asset – and when they computed the proper SSI amount, they determined that it should have been lower in the past.  So now, SS is deducting the total overpaid amount from the tenant’s checks, in monthly installments until the full amount has been repaid.  The 4350.3 tells us (5-6 J) to count the amount the tenant actually receives.  This is an exception to the “count the gross amount” rule because, in the past, she paid a higher rent based on the higher SSI amount.