Health & Benefits

They will get a notice from IDHS which says:

• How much they were overpaid,
• When they were overpaid, and
• Why they were overpaid. For example, "client failed to report income."

When a SNAP overpayment is discovered, IDHS decides who is at fault for the overpayment. They might decide that it was their fault or the SNAP recipient’s fault. But no matter who caused the overpayment, the overpayment must be paid back. 

SNAP agency error

If someone at IDHS made a mistake that caused the SNAP overpayment, the overpayment is called an "agency error." An example of an agency error is when a SNAP recipient  did report their income, but IDHS did not add this income to their budget.

Inadvertent SNAP client error

If IDHS decides that the recipient was at fault, then the overpayment will be called an "inadvertent household error." An example of a client error is when someone moves out of their household or has gotten a job, and they forgot to tell IDHS. 

SNAP intentional program violation

IDHS also decides whether the SNAP error was on purpose or just a mistake. If they decide that it was on purpose, it is called an "intentional program violation." IDHS may call the overpayment "inadvertent household error" at first. But, after investigation, they may change it to a suspected intentional program violation.

IDHS can only collect overpayments that were discovered in the last six years. For example, if IDHS discovers someone was overpaid 7 years ago, they cannot ask for the money back.

Once an overpayment is established and a recipient is sent notice, there is no time limit for IDHS to collect SNAP or Temporary Assistance for Needy Families (TANF) overpayments. They can collect overpayments through Illinois state or federal payments, such as income tax refunds. 

However, if IDHS sued in court, they may be able to raise a statute of limitations argument.

IDHS must send written notice of an overpayment and a demand for payment within five years of when IDHS's right to collect first starts. If the Attorney General brings a case to recover an overpayment, the case must start within 10 years of when the notice was sent.

First, they should carefully read the notice. They should look at the dates on the notice and ask themselves if someone in their household was working, but not reporting their income during the date(s) IDHS put on the notice. Or, did they forget to tell IDHS that a person who was counted as a household member has moved out?

If they still have questions after reading the notice, they should file an appeal right away. 

For example, they might have some questions about:

• The period of the overpayment,
• The amount of the overpayment,
• How the overpayment was calculated, or
• The reason that IDHS gave for the overpayment.

There is no cost to file an appeal, and it is the best way to get IDHS to give them a better explanation for why the overpayment occurred. Filing an appeal is the only way to get IDHS to change their decision. The notice recipients receive should also include information about free legal services to help them with their appeal.

For SNAP, they have 90 days to appeal from the date on their notification letter.

If the notice says that they were overpaid for both SNAP and TANF, they only have 60 days to appeal the overpayment decision for their TANF cash assistance. They should file an appeal:

• Through the ABE Appeals Portal,
• In writing at their local IDHS office,
• By Fax to (312) 793-3387,
• Be Email at [email protected]  or
• By phone to the Bureau of Assistance Hearings at (800) 435-­0774.

There are two ways IDHS can collect a SNAP or TANF overpayment from someone:

• Repayment, or
• Recoupment.

When a person is charged with an overpayment, a letter asking for payment will be sent to them. This is called repayment. The letter gives them the option of paying the entire claim or trying to set up a payment plan. Paying off an entire claim is often not an option because of the size of the overpayment.

Another way to pay is by recoupment. Recoupment means that IDHS will keep part of their current benefits each month until the overpayment is paid off. This is most commonly used in cases where a person is currently receiving SNAP or TANF benefits. If they do not respond within ten days to an IDHS notice asking for repayment, IDHS will start reducing their benefits without any additional notice. The amount taken from their monthly benefit amount depends on the reason for the overpayment.

• If the overpayment was determined to be a client error that was a mistake (not an intentional program violation) or an agency error, the monthly recoupment amount is the greater of $10 or 10% of their current monthly benefit. For example, a household currently receives $200 per month in SNAP, IDHS would keep $20 per month until the overpayment amount is paid back. This would leave them with $180 in food stamps each month.
• If their overpayment was an "intentional program violation" the monthly recoupment amount is the greater of $20 or 20% of their current monthly benefit. For example, if their household currently gets $200 per month in SNAP, IDHS would take out $40 each month until the overpayment amount is paid back. This would leave them with $160 in food stamps each month.

IDHS only recoups SNAP overpayments from SNAP benefits and TANF overpayments from TANF benefits.

When a person is charged with an overpayment and they are no longer receiving SNAP or TANF, a letter asking for repayment will be sent to them. When they get the letter, they should work out a payment plan with IDHS. They can pay the whole amount of the overpayment or make a payment plan to pay it back over time.

If they don't make payments according to their payment plan for 90 days, their overpayment account will become "delinquent." When this happens, their case can be referred to:

• A collection agency,
• The State Comptroller Offset System, which can take their state tax refund, lottery winnings, or a state payroll check,
• The Treasury Offset Program, which can take their federal tax refund, social security benefits, and/or other federal checks,
• The Attorney General for civil prosecution,
• Their employer to garnish their wages, or
• Garnish their unemployment benefits.

If they file bankruptcy while they are in the process of repaying an overpayment, no one can try to collect from them after they are notified of the bankruptcy filing until a decision is made by the bankruptcy court. But they must list IDHS and the overpayment on their schedule.