Health & Benefits

What is a Social Security overpayment?

Sometimes, the Social Security Administration (SSA) tells people they have received more Social Security benefits than they should have. This is called an overpayment. This might happen for a number of reasons, such as if your living or marital situation changes, you are no longer disabled, or your income is more than you estimated.

If the SSA overpays you, they will usually ask you to pay back the overpaid benefits within 30 days. They might also lower your current benefits until the money is paid back. The SSA will send you a notice letter explaining what went wrong and how to return the extra money. 

What can I do if I get an overpayment notice?

If you get an overpayment notice from the SSA, you can repay all of the money, or you have 3 basic options: 

• Ask for reconsideration,
• Ask for a waiver, or
• Negotiate a payment plan. 

You can choose to do more than one of these options at the same time. The following sections discuss these options in detail.

Reconsideration

If you do not agree that you were overpaid, or if you think the amount is wrong, you can appeal A request to change a court's decision the overpayment by filing a Request for Reconsideration. You have 60 days from the date you received the overpayment notice to file this request. The SSA assumes you receive the notice five days after the date on the notice unless you show evidence Anything used to show that something is true that it was received later.

You can file a Request for Reconsideration with the Social Security District Office. You can file the request online on the SSA’s website, which is the fastest way. You can also mail the request or deliver it in person. It is usually best to file the request at the office closest to your home. You can use the Social Security District Office locator to find the office nearest you. 

The SSA will wait 30 days (plus 5 mail days) from the date of the overpayment notice before they start taking the overpaid money from your benefit payment. If you submit a Request for Reconsideration before the 30 days have passed, the SSA will not begin collecting the overpayment until a decision is made about your request.

Usually, staff at your local Social Security District Office decide reconsideration requests. They review only what you submit with your request, but you can also send in more evidence to supplement your request. Once they make a decision, the SSA will let you know what they decide. You can check the status of your request online or by calling (800) 772-1213.

Waivers

If you agree that you were overpaid but think you should not have to pay it back because it was not your fault and you cannot afford to repay it, you should file a Request for Waiver of Overpayment Recovery. A waiver asks the SSA to excuse some or all of your overpayment.

There is no deadline for filing a waiver. However, to stop SSA from taking part of your benefits, you should file a waiver as soon as possible. You can mail or fax your completed request for a waiver to your local Social Security office.

To get a waiver from the SSA, you must not be at fault for the overpayment and either:

• Paying the SSA back would mean you cannot afford housing, food, clothes, or medical expenses, or
• Paying the SSA back would be unfair for another reason.

You may need to provide proof of your income and bills to show that all your money goes to monthly expenses and that repaying the overpayment would be a hardship.

The SSA can only find you at fault for an overpayment after they find evidence that the overpayment happened because you: 

• Made an incorrect statement that you knew or should have known was wrong,
• Failed to share important information, or
• Accepted payments you knew or should have known were incorrect.

If you file the waiver request within 30 days (plus 5 mail days) of getting the overpayment notice, the SSA will not collect the overpayment from your benefits. The SSA will not begin collecting the overpayment from your benefits until they approve, partly approve, or deny To refuse or say no the waiver request. Once they decide, the SSA will notify you of their decision.

For small overpayments ($1,000 or less), you may not need to complete a Request for Waiver of Overpayment Recovery. Instead, you can call the SSA at (800) 772-1213 and request a waiver by phone.

Negotiate a payment plan

If your request for reconsideration or waiver of overpayment was denied, or if you agree you were overpaid but cannot afford to pay it all back right away, you can ask the SSA to create a payment plan. You can contact the SSA at (800) 772-1213 to request a lower repayment rate.  

If you negotiate a repayment plan, the SSA will try to work out a plan that will let them recover all of the overpayment within 12 months, or at most within 60 months. If you can’t repay the overpayment within 60 months, you will be asked to fill out a Request for Change in Overpayment Recovery Rate form. You can fax or mail the form to your local Social Security office.

For more information on setting up a payment plan, see Negotiating repayment plans with SSA.

Do I have to choose between the options, or can I take all of these actions?

No, you do not have to choose between a reconsideration, waiver, or payment plan request. You can pick multiple options if you want.

Whatever you decide, make sure to do it quickly. If you ignore the overpayment notice, the SSA can start taking money from your benefits.

What if the overpayment amount I owe is very little?

The SSA will usually waive To give up a legal right or pardon a fee overpayments if they were caused by your having resources that exceeded the SSA limit by $50 or less in a month. This is true as long as the evidence shows you did not willfully and knowingly fail to report the extra money.

Generally, if the overpayment is $2,000 or less and there is no indication that you were at fault, the SSA will forgive the overpayment upon request. This is known as an "administrative waiver." It is important to ask for the waiver. Otherwise, the SSA will collect the overpayment based on their normal collection process. 

Remember, for small overpayments ($1,000 or less), you can call the SSA at (800) 772-1213 and request a waiver by phone. 

How does the SSA collect my overpayment?

If you are still getting benefits from the SSA, they will either stop or lower your monthly benefit until your overpayment is paid back.

If you are overpaid after March 27, 2025, the SSA will automatically place you in “full recovery.” This means that 100% of your Social Security benefit will be withheld to repay the overpayment. For overpayments between March 25, 2024, and March 27, 2025, the SSA’s collection rate is ten percent of your monthly benefit or $10, whichever is greater. The withholding When an employer keeps some of a person's paycheck to cover their taxes rate for Supplemental Security Income A federal program that gives money to low-income elderly, blind and disabled people on a monthly basis (SSI) overpayments remains at ten percent, assuming no fraud The deception of someone(s) with intent to cause damage (not including  forgeries and counterfeiting). . If you can’t afford for your full benefit amount to be withheld, you can contact the SSA at (800) 772-1213 to request a lower recovery rate. Learn more about negotiating a payment plan with the SSA.  

If you do not get Social Security benefits anymore, the SSA might take your overpayment from your federal tax refund The money a person gets back if they had too much money withheld for taxes during the year or from any future Social Security benefits you might get. For example, if you become eligible for SSI later, SSA will take your overpayment from future SSI payments.

What if my request for reconsideration or waiver is denied?

If your request for reconsideration or waiver is denied, you still have other options available. Your other possible appeal steps include:

• Asking for a hearing with an administrative law judge (ALJ),
• Asking the Appeals Council to review the decision, and
• Filing a civil action with the U.S. District Court.

Hearing by an ALJ

If you disagree with the reconsideration or waiver decision, you can ask for a hearing with an ALJ by:

• Filing a request for a hearing online, which is the quickest and easiest way, or
• Downloading and filling out the Request for Hearing by Administrative Law Judge form and sending it by mail or fax to your local Social Security office.

You need to ask for a hearing within 60 days after you get the decision notice. You have a right to be represented at the hearing.

If you do not want to attend a hearing before an ALJ, you can ask the ALJ to decide based on the evidence in your file. But if you do want a hearing, it is important that you show up when it is scheduled.

After the ALJ makes a decision, they will send you a copy of the hearing decision.

Review by Appeals Council

If you disagree with the ALJ’s decision, you can ask the Appeals Council to review it by:

• Filing a request for review online using the SSA’s secure online process, which is the preferred method, or

• Downloading and filling out the Request for Review of Hearing Decision/Order form and sending it by mail or fax to:

  Social Security Administration
  Office of Appellate Operations
  6401 Security Blvd
  Baltimore, MD 21235-6401 

  Fax: (833) 509-0817

You need to ask for a review within 60 days after you get the hearing decision. If you need more time to submit evidence or arguments, you can ask for an extension.

Also, the Appeals Council might decide to review your case within 60 days of the decision date, even if you didn’t ask for it.

The Appeals Council will decide whether to grant, deny, or dismiss your request for review. If they grant it, they will either make a decision or send it back to a judge for more action, like a new hearing and decision. The Appeals Council will let you know what action they are taking and explain why.

Filing a civil action with the U.S. District Court

If you disagree with the Appeal Council’s decision about your request for review of the administrative law judge’s decision, you can take legal action by filing a civil case with the federal court, also called the US District Court, in your area. If you choose this option, it is a good idea to get help from a lawyer Someone who represents clients in courts or who gives legal advice or legal aid to guide you through the process.

You need to file in federal court within 60 days after you receive the notice of the Appeals Council’s action. The court will look at the evidence and the final decision. The federal court might send the case back, order a new hearing and decision, direct the SSA to give you benefits, or dismiss the case.