I retired December 31, 2011. My first Social Security payment was January 18, 2012. On July 8, 2013 I received a letter from Social Security saying they over paid me
7,139.70. This was based on 2012 tax information. I called the Local Office and explained that this was work done in 2011 and for a lump sum
vacation pay out. The gentleman said no problem just get a letter from your employer stating that. I did. It read in part' "Mr Spalding was issued two payments in 2012 totaling 28,994.29. The first payment, in the amount of 10,320.00 issued on 01/01/12, was for service performed during the month of December 2011. The second payment, in the amount of 18,674.29 dates 01/05/12, was payment for lump sum vacation pay out." Social Security responded by saying. "THE OVERPAYMENT CAME FROM YOUR EARNINGS AND THE FACT THAT YOU RETIRED EARLY, BEFORE 66. YOUR EARNINGS, AT THE TIME, EXCEEDED THE LIMIT. YOU ARE NOW 66 AND EARNINGS NO LONGER MATTER."
First off I am not sure what their statement means and I believe that at least my vacation pay out should not be considered as 2012 earnings, and perhaps not even the December 2011 earnings Am I right?