Social Security overpayments occur when beneficiaries receive more funds than they are entitled to, often due to unreported changes in income, living arrangements, or other eligibility factors. The Social Security Administration (SSA) identifies these overpayments and seeks repayment, which can significantly impact beneficiaries’ finances.
Recent Policy Changes:
As of March 27, 2025, the SSA has reinstated a policy allowing it to withhold up to 100% of monthly Social Security payments to recover overpaid amounts. This change reverses the previous policy from 2024, which limited withholdings to 10%. The SSA anticipates that this adjustment will recover approximately $7 billion over the next decade.
What You Should Do:
- Stay Informed: If you receive Social Security benefits, monitor any communications from the SSA regarding overpayments.
- Report Changes Promptly: Notify the SSA of any changes in your income, living situation, or other factors affecting your eligibility.
- Review Notices Carefully: If you receive an overpayment notice, read it thoroughly to understand the amount owed and the repayment process.
- Contact the SSA if Needed: If you believe the overpayment is incorrect or if you cannot afford the proposed repayment rate, contact the SSA to request a waiver or a lower recovery rate. You can reach them at 1-800-772-1213 or visit your local SSA office.
For more detailed information on overpayments, including how to repay them online, visit the SSA’s official website.