For an overissuance that you got by mistake (UPV-unintentional program violation), DTA calculates the difference between what you got and what you should have gotten after allowing all applicable deductions and exclusions. 106 C.M.R. § 367.495(D). If you are no longer receiving benefits, DTA will not try to recover a UPV overissuance unless it is $125 or more. 106 C.M.R. § 364.870.
For an overissuance that you got on purpose (IPV-intentional program violation), DTA calculates the difference between what you got and what you should have gotten after allowing all applicable deductions and exclusions except for the earned income (20 percent) deduction. 106 C.M.R. § 367.500(A).
For both intentional and unintentional program violations, the first month of overissuance is the month the change would have been effective if it had been reported on time. 106 C.M.R. §§ 367.495(D), 367.500(A).
DTA cannot claim any benefits issued more than six years before it became aware of the overissuance. 106 C.M.R. §§ 367.495, 367.500(A). DTA is supposed to establish the claim no later than the quarter after the quarter it discovered the overissuance. 7 C.F.R. § 273.18(d)(1).
Example
Jane Smith is self-employed as a tax-preparer and is subject to change reporting. She gets her food stamps/SNAP on the 8th of the month because her SSN ends in "5." On March 7 she gets an unusually large payment from a client. She loses track of time and doesn't report the change until March 20, more than ten days after the change. However, even if Jane had reported on or before March 17th, Jane was not overpaid in benefits for March because DTA would not have reduced her March benefits. Her April benefits would be adjusted, but not March.
Advocacy Reminders
- If you failed to report a change, but it would not have affected your SNAP/food stamp benefits, then there is no overissuance (for example, if you failed to report a marriage to someone already in your household, or failed to report income considered non-countable).
- There is no overissuance if you did not report a change that you were not required to report. For example, there is no overissuance if you were on semi-annual reporting and you did not report an increase in income, unless the increase put your household over the gross income limit.
- Be sure to ask DTA for detailed information on how it calculated the amount of the overissuance. For example, DTA should not count cash assistance that was overpaid during the same period as the benefits and is subject to recovery by DTA or a court agreement. See an advocate if you disagree with DTA's calculations.
- If you will be unable to repay the overissuance within three years without financial hardship, DTA can "compromise" the claim and reduce it to an amount that you can pay off within three years. Although DTA's regulations say that only unintentional program violations can be compromised, 106 C.M.R. § 367.495(F), federal regulations say that all overissuances, including intentional program violations, can be compromised. 7 C.F.R. § 273.18(3)(iv)(M). You should ask DTA to compromise your claim if you cannot pay it in full.
Additional Policy Guidance on Overpayments
Additional Policy Guidance on Overpayments
- No overissuance for changes not reported during semi-annual reporting period unless household exceeded gross income test. Transitions Hotline, June 2006, p.4
- DTA guidance on overpayment referrals and recoveries. F.O. Memo 2006-24 (May 19, 2006)
- No referral if failure to report a change is unintentional or agency error. Transitions Hotline Q&A, October 2005.
Produced by Patricia Baker, Laura Gallant, Deborah Harris, Rochelle Hahn Massachusetts Law Reform Institute Last updated January 2011
