Health & Benefits

If you get Temporary Assistance for Needy Families (TANF) benefits, the Department of Human Services (DHS) may tell you that you have been paid too much.

The overpayment can be for one month, many months, or many years. For example, you can be overpaid a few dollars each month. Or, maybe one month you got TANF benefits that you were not supposed to receive.

How will you know if you have an overpayment?

You should get a notice from DHS that says:

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

Is there a [no-lexicon]statute[/no-lexicon] of limitations that keeps DHS from collecting old overpayments?

Once an overpayment is established and you are sent notice, there is no statute of limitations for collecting TANF overpayments through Illinois state or federal payments, such as income tax refunds. However, if DHS sued you in court, you may be able to raise a statute of limitations argument.

DHS must send written notice of an overpayment and a demand for payment within five years of when DHS'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.  

Does it matter what reason is given for the TANF overpayment?

For TANF overpayments, DHS does not have to decide who was at fault. No matter who caused the overpayment, you have to pay it back.

What should you do if you have been charged with a TANF overpayment?

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

If you still have questions after reading the notice, you should file an appeal right away. For example, you might have some questions about:

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

There is no cost to file an appeal, and it is the best way to get DHS to give you a better explanation for why the overpayment occurred. Filing an appeal is the only way to get DHS to change their decision.

How much time do you have to appeal the overpayment?

For TANF and other cash benefits, you must appeal within 60 days from the date of the notice. 

You should file an appeal:

• Through the ABE Appeals Portal,
• In writing at your local DHS office, or
• By phone to the Bureau of Assistance Hearings at (800) 435-­0774.

How do you pay DHS back for the overpayment?

There are two ways DHS can collect a SNAP or TANF overpayment from you: 

• Repayment, or
• Recoupment.

If you are still getting  Supplemental Nutrition Assistance Program (SNAP) or TANF benefits:

When you are charged with an overpayment, a letter asking for payment will be sent to you. This is repayment. The letter gives you the option of paying the entire claim (which is often not an option because of the size of the overpayment) or trying to set up a payment plan.

Another way to pay is by recoupment. Recoupment means that DHS will keep part of your current benefits each month until the overpayment is paid off. This is most commonly used in cases where you are currently receiving SNAP or TANF benefits. DHS only recoups SNAP overpayments from SNAP benefits and TANF overpayments from TANF benefits.

If you are no longer getting TANF benefits:

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

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

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

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

For information on Supplemental Nutrition Assistance Program (SNAP) overpayments, visit SNAP benefits overpayments.