A Social Security overpayment occurs when the Social Security Administration (SSA) disburses more benefits to an individual than they are entitled to receive. This can happen due to various reasons, such as changes in income, marital status, or living arrangements that aren’t promptly reported or processed.
Recent Policy Changes
Effective March 27, 2025, the SSA will increase the default overpayment withholding rate to 100% of a beneficiary’s monthly payment. This means that if an overpayment occurs, the SSA may withhold the entire monthly benefit to recover the owed amount.
Beneficiary Options
If you receive a notice of overpayment, you have several options:
- Request a Waiver: If you believe the overpayment wasn’t your fault and repaying it would cause financial hardship, you can request a waiver. If approved, you won’t need to repay the overpaid amount.
- Negotiate a Repayment Plan: If full withholding would cause financial difficulty, contact your local SSA office or call 1-800-772-1213 to request a lower withholding rate or establish a manageable repayment plan.
- Appeal the Decision: If you disagree with the overpayment determination, you have the right to appeal. This involves requesting a reconsideration of the decision, and during this process, recovery efforts may be paused.
Repayment Methods
Should repayment be necessary, the SSA offers multiple methods:
- Online Payment: You can repay overpayments securely through the Pay.gov platform. Ensure you have your remittance ID, which is found on the overpayment notice, to complete the transaction.
- Mail: Payments can be mailed directly to the SSA using the payment stub provided in the overpayment notice.
- Phone: Contact the SSA to explore additional repayment options or to set up a payment plan.
Preventing Overpayments
To minimize the risk of overpayments:
- Timely Reporting: Promptly inform the SSA of any changes in income, resources, living arrangements, or marital status.
- Regular Reviews: Periodically review your benefit statements and ensure all information is accurate.
By staying proactive and informed, you can effectively manage your Social Security benefits and address any overpayment issues that may arise.