5 Things You Need To Know About Social Security Overpayments

An overpayment occurs when the Social Security Administration (“SSA”) states that you received more social security or SSI benefits than you were supposed to receive

If you do not think you owe the money, you can ask SSA to reconsider the overpayment by filing a Request for Reconsideration Form (SSA561-U2). You can also call your local Social Security office and ask them to take your appeal over the telephone. Click here to find the number of your Social Security office.

Whether or not you think you were overpaid, you can also ask SSA to waive the overpayment by filing a Request for Waiver Form (SSA-632-BK). You can also call your local Social Security office and ask them to take your appeal over the telephone. Click here to find the number of your Social Security office.

Follow the time limits given in your Notice of Overpayment. Generally, you have only 60 days from the date of the Notice of Overpayment to file a Request for Reconsideration. If your request is late, tell them what “good cause” reason you have. However, you may file a Request for a Waiver at any time.

• The individual who receives the disability benefit
• The individual’s spouse
• Others receiving benefits on the individual’s earnings record
• The estate of the individual or spouse if they are deceased
• An alien’s sponsor (SSI only) and
• A representative payee

If you want to file a Request for Reconsideration of the overpayment because you think you were not overpaid or that the amount SSA states is incorrect, it is best to submit this form online. You can also call your local Social Security office and ask them to take your appeal over the telephone. Click here to find the number of your Social Security office.

If you want to file a Request for Waiver of the overpayment, it is best to submit the form online. You can also call your local Social Security office and ask them to take your appeal over the telephone. Click here to find the number of your Social Security office.

Be sure to keep a copy of everything you give to Social Security for your records.

To have SSA waive the overpayment, you will have to show that:

• The overpayment was not your fault and
• That you cannot afford to pay it back.

Examples of “no fault” include that:

• you didn’t know you had to give SSA some information they claimed they needed
• you did report new information to SSA but SSA did not reduce your benefits and you thought you were receiving the right amount
• you did not know that the information you gave SSA was incorrect
• you thought the payments you received were correct

If SSA believes that you are without fault, then they decide whether or not you cannot afford to pay it back.
To have the overpayment waived you must show SSA that you cannot afford to pay back the overpayment. This can be because:

• You receive some sort of public assistance like SSI or
• Repaying the overpayment will put you into debt or make you unable to pay your ordinary living expenses. If you don’t receive public assistance or SSI, you will have to list all of your necessary expenses/bills on the waiver form to show that you can’t afford to pay Social Security back or
• Recovering the overpayment from you would be extremely unfair. For example, if you changed your position for the worse or gave up a valuable right because you relied on what Social Security told you, then that would be unjust. SSA says that this is “against equity and good conscience.”

Social Security will waive overpayments of $50 or less. This is called the SSI $50 Rule. Where the overpayment is $2,000 or less and you file a request for reconsideration or waiver, Social Security will waive any collection of the over-payment (unless you were at fault in creating the overpayment). This is known as the SSI $2,000 Rule.

If you receive SSI, you are only allowed to have $2,000 in the bank or $3,000 if you are a disabled couple. You must show receipts or other documentation proving the money has been spent or is no longer available to you for some other reason. You cannot just give the money to relatives to hold for you. Remember to keep a copy of everything you submit to Social Security!

In the case of property (for example, owning a house in another country), you can provide documents showing the property’s value is lower than what Social Security claims.

If you disagree with the waiver decision, the next step of appealing is to file a Request for Reconsideration either online or by telephone as described above.

If the request for reconsideration of the waiver decision is denied, you can request a hearing with an Administrative Law Judge (ALJ). You must do this within 60 days of the date of the denial notice. You can do this online or by telephone at 1 800- 772-1213.

• SSA will recover the SSI or SSD overpayment.
  • For SSI SSA can only take 10% of their monthly grant
  • For SSD SSA is once again permitted to take all your benefits but allows for negotiation of a lower repayment amount. If this creates a financial hardship for you, ask Social Security to take out less. (If you receive SSD, and if SSA stops your benefits entirely because of the overpayment, contact your local SSA field office or call SSA at 1 800- 772-1213 and ask them to restart your SSD and only take out 10%.)
• The Social Security Administration can make claims against you in civil court
• Your IRS tax refunds can be seized
• Credit reporting agencies can be notified
• Private debt collection agencies may be used to collect the debt (overpayment) from you

Recent changes to Social Security overpayment recovery rules now allow the agency once again to withhold 100% of SSD benefits until the overpayment is repaid, reversing the 10% limit created in 2024. While recipients can request a lower repayment rate, there is no assurance that Social Security will approve it, creating financial uncertainty.

• Social Security Form Search

The information in this document has been prepared by The Legal Aid Society for informational purposes only and is not legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. You should not act upon any information without retaining professional legal counsel.