Man given benefits when dad died as a teen shocked when government demands he pay $8,000 back
Topics: US News
Thomas Bamford
Featured Image Credit: KMTV
Topics: US News
An Iowa man who received Social Security survivor benefits as a teenager following the death of his father has been told he owes almost $8,000, more than three decades after the payments stopped.
Christopher Storm was 17 years old, working at Pizza Hut and attending high school in Texas when his father died.
He received roughly $500 a month in survivor benefits until he turned 18, at which point he was issued a final lump sum payment of around $3,000 and the payments ceased.
"It was a help to receive the money, the funds, and be able to try to make it on my own," Storm said to 3KMTV.
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That should have been the end of it.
Instead, Storm and his wife Amy were expecting a tax refund this year when they discovered the IRS had claimed it to cover an alleged past debt.
The Social Security Administration is now pursuing Storm for $7,996, claiming he was overpaid back in 1996.
"We're frantically just trying to figure out what was going on," Storm said of the moment they found out.
According to Council Bluffs attorney Keith Buzzard of McGinn Law, cases like Storm's are far from rare. "It is fairly common. I think in any given year, there's like a million of these letters that go out to people," he said.
Perhaps more alarming is the scale some of those letters demand. "They'll get a letter that they owe 40 or 50 grand," Buzzard added.
One possible explanation for the overpayment, Buzzard suggested, is that Storm's earnings from his Pizza Hut job may have pushed him over the income threshold for benefit eligibility at the time, meaning the payments he received may have been more than he was technically entitled to. Crucially, even if the Social Security Administration made the original error, that does not automatically mean the debt gets written off.
And there is no statute of limitations.
"They can come back any time," Buzzard said.
The Storms had planned to put the tax refund towards home repairs. While the sum may not sound life-changing on paper, Storm says it is significant to them, and the circumstances make it feel deeply unfair.
"It may not seem real substantial to some people. It feels substantial to us," he said.
"To have them say, thirty years later, 'Hey, that was an overpayment' definitely feels very unjust."
Buzzard has advised the Storms to appeal the debt as a first step, which should at least give them clarity on where the claim has come from and whether there are grounds to challenge it.
UNILAD have contacted the Social Security Administration for comment