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Unusual Check from Government

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Posted · Report post

Client came into my office this AM with a $1500 check from US Treasury.

Client is age 67 and has been receiving SocSec benefits since age 62, plus has been receiving salary from closely-held corp. Check is in her name, although she files a joint tax return with her husband.

I told the client to look for some sort of correspondence in the next few days explaining the payment. In the meantime, I'm trying to figure out what it might be. I don't think it's a tax refund of any sort (no refunds are pending).

The notation on the check to the left of the amount says "SOC SEC FOR INS".

Has anybody ever seen this notation or have any idea what this may be?

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Posted · Report post

Taxbilly:

I tried searching it earlier but didn't come up with anything near what you got.

Thanks for the link - that was very useful.

It seems that this notation has somehting to do with SSI and/or Medicaid, neither of which would apply to this client. I advised them to not cash the check and to contact SSA about it right away. It could be a simple SSA error, or it could be the tip of an identity theft or Medicaid fraud iceberg.

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Posted · Report post

Taxbilly:

I tried searching it earlier but didn't come up with anything near what you got.

Thanks for the link - that was very useful.

It seems that this notation has somehting to do with SSI and/or Medicaid, neither of which would apply to this client. I advised them to not cash the check and to contact SSA about it right away. It could be a simple SSA error, or it could be the tip of an identity theft or Medicaid fraud iceberg.

John, check this out:

Click Here.

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Posted · Report post

Bob:

Thanks for that info.

The client definitely doesn't fall into any of those categories.

I've told her not to sit on this - she's supposed to be contacting SSA today.

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Posted · Report post

Let us know what you learn, John. We might all learn something new.

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Posted · Report post

Well, it turns out to be much simpler than I first thought.

After spending most of her day on hold and being shuttled from one person to the other, she learned tha it was nothing more than a SocSec benefit increase.

The taxpayer's monthly SocSec benefit was increased as a result of her reported W-2 earnings over the past several years since she retired. For some reason it took them a long time to process the info, and the $1,500 check was indeed a make-up check for the retroactive payment.

I still don't know why it has the notation on it, but just to the left of the amount imprinted on the check, it clearly says:

SOC SEC

FOR INS

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Posted · Report post

You would think that they would enclose an explanation so that the taxpayer does not have to spin his/her wheels trying to find out what the check was for.

taxbilly

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Posted · Report post

You would think that they would enclose an explanation so that the taxpayer does not have to spin his/her wheels trying to find out what the check was for.

taxbilly

My guess is that two weeks later they will get a letter telling them to expect this check and explaining why they are getting it. That's the guvmint for you. B)

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Posted · Report post

I'm guessing the explanation will accompany their next statement of the upcoming year's benefits, which I think is sent out in Oct or Nov. It will probably say they should expect a make-up check without saying the check may have already been sent. By then the client will have forgotten all this and will be looking for another check.

Oh well, at least SSA sent the $$$. It's hard to complain about that.

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Posted · Report post

I'm guessing the explanation will accompany their next statement of the upcoming year's benefits, which I think is sent out in Oct or Nov. It will probably say they should expect a make-up check without saying the check may have already been sent. By then the client will have forgotten all this and will be looking for another check.

Oh well, at least SSA sent the $$$. It's hard to complain about that.

Can this possibly be an overpayment for Medicare insurance? Like maybe the previous billing for medicare insurance was incorrect. I received this check today myself..

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Posted · Report post

Am not surprised and was going to say that it might be a makeup check. I have clients who continue to work even though drawing SS. Because they (particularly women who stayed home to raise their children) had many low or no income years. Every year in Oct or Nov, they receive a letter telling them of their increased benefits. Somehow this one fell through the cracks. Am glad they caught it now.

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