Recoupment
What it means
When a benefits agency reduces a recipient's current benefits to pay back benefits paid earlier that the recipient was not entitled to. For Temporary Assistance, the reduction is 10% of the monthly grant. The recipient can request a drop to 5% if 10% causes hardship — that requires showing expenses are more than income. For SNAP, the reduction comes out of the monthly benefit too. After a case closes, the unpaid amount can be taken from a federal tax refund. Every recoupment has to start with a written notice, and the recipient can challenge the amount or the reason at a fair hearing.
When you might hear this
You hear this when a benefits agency says you got too much money in the past and is taking it back from your current benefits. It can happen because of an agency error, a missed report, or a change that was not caught in time.
What to ask
- What is the total amount the agency says I owe?
- Why does the agency say I was overpaid — what exactly happened?
- Can I see how the amount was calculated?
- Can I ask for the reduction to be lowered because of hardship?
- Did I get an adequate written notice before recoupment started?