Overpayment Notice from Social Security? Here's How to Fix It

An overpayment means you received more money than you should have from Social Security. This happens when the agency has missing or incorrect information about your situation.

What Causes an Overpayment?

Overpayments occur when you don't report important changes in your life, such as:

• Your ability to work

• Where you live

• Your marital status

• Your income

If you receive an overpayment notice from Social Security, it will explain the specific reason your overpayment happened.
 

Your Three Options When You Get an Overpayment Notice

When Social Security sends you an overpayment notice, you have three choices:

1. Pay It Back

You can pay us back if your benefit amount was more than it should have been. This is the fastest way to resolve the debt.
 

2. Request a Waiver

If you can't afford to pay back and you feel the error wasn't your fault or is unfair for any reason, you can request a waiver to avoid having to repay an overpayment. The waiver process asks Social Security to forgive the debt if you qualify.
 

3. File an Appeal

If you think Social Security made a mistake in how much you were overpaid or that you weren't actually overpaid, you can file an appeal. File an appeal only if you disagree with the overpayment amount itself.

How Social Security Collects If You Don't Repay

Social Security will wait at least 30 days after sending the overpayment notice before starting to collect the money.
 

What Happens If You Act Within 30 Days:

• If you request a waiver or file an appeal within 30 days, Social Security won't collect the money until they decide on your request
   

What Happens If You Don't Act Within 30 Days:

• Social Security will automatically withhold 50% of your benefit or 10% of your SSI payment each month until the overpayment is repaid
   

If You No Longer Receive Benefits:

The law allows Social Security to collect the debt in various ways, including:

• Withholding your tax refund

• Withholding certain state payments

• Garnishing your wages
   

If You Die Before Repaying:

Social Security may seek repayment from anyone who receives benefits based on your record.

How to Avoid Overpayments in the Future

Overpayments generally occur when Social Security doesn't have the right information about you. Always notify them when there are changes in your situation.

The changes you need to report may be different depending on which benefits you receive:

• Retirement - What you must report while getting Retirement benefits

• Disability - What you must report while on Disability benefits

• Family - What you must report while on Family benefits

• Survivor - What you must report while on Survivor benefits

• SSI - Report changes to your monthly income, resources, and living situation

Reporting changes promptly prevents overpayments from happening in the first place.

Quick Decision Guide: What Should You Do?

Deadlines to Remember

• 30 days from notice date: Deadline to request waiver or appeal before collections start

• After 30 days: Social Security automatically begins withholding 50% of benefits or 10% of SSI payments

• Ongoing: Report life changes immediately to prevent future overpayments

Important Reminders

1. Read your notice carefully - It explains exactly why the overpayment occurred

2. Act within 30 days - This stops automatic withholding while your request is reviewed

3. Choose the right option - Waiver for financial hardship, appeal for disagreement with amount

4. Report changes promptly - Prevent future overpayments by updating Social Security quickly

5. Don't ignore the notice - Overpayments don't go away and can be collected from tax refunds or wages