Social Security overpayments occur when the Social Security Administration (SSA) disburses more benefits to an individual than they are eligible to receive. This can result from various factors, including:
- Failure to report changes in income, living arrangements, or marital status.
- Exceeding resource or income limits set for benefit eligibility.
- SSA’s miscalculations or administrative errors.
If you receive a notice about an overpayment, it’s crucial to address it promptly. The SSA typically requires repayment within 30 days of the notice date. If full repayment isn’t feasible, you can request a waiver or appeal the decision. The SSA provides options to repay overpayments online through Pay.gov using the remittance ID from your notice.
Starting March 27, 2025, the SSA will reinstate full withholding for overpayment recoveries, meaning 100% of a recipient’s monthly benefit may be withheld until the debt is fully repaid. If this poses financial hardship, you can contact the SSA to request a lower recovery rate.
It’s essential to keep the SSA informed about any changes that might affect your benefits to prevent overpayments. Regularly reviewing your benefit statements and promptly reporting changes can help you manage your benefits effectively.