What are Social Security Overpayments?

What is an Overpayment?

An overpayment is when Social Security pays you more than you should have been paid. The amount of your overpayment is the difference between the amount you received and the amount due.  

For example, you typically get $600 from Social Security every month. However, in one month, you get $700. The overpayment would be $100 since you received $100 more than you usually do.   

If an overpayment happens, Social Security will send you a letter in the mail. Social Security is required by law to adjust your benefits or get that money back, so it’s important to take action if you get an overpayment letter. 

What Can Cause an Overpayment?  

Overpayments can happen for a few different reasons: 

• Your income is more than the allowable limits. 
• Your income is more than you estimated. 
• Your living situation changes. 
• Your marriage status changes. 
• You have more resources than the allowable limit. 
• You are no longer disabled and continue to receive benefits. 
• You do not report a change (on time or at all) as required. 
• Social Security incorrectly totaled your benefits because of incorrect or incomplete information. 

What Should You Do if You Receive an Overpayment Notice?  

If you get a letter in the mail that says Social Security overpaid you, there are some things you should do. First, read the overpayment notice very carefully. Each person’s overpayment situation is different, and Social Security handles them on a case-by-case basis. In the letter, you will find a few important pieces of information, such as how much Social Security overpaid you, the reason why you were overpaid, how you can pay Social Security back, your option to appeal the overpayment, and how to ask for a waiver.  

What is an Appeal? 

An appeal is your opportunity to have Social Security review an overpayment decision. You can appeal an overpayment decision if you don’t agree that you have been overpaid or if you think the overpayment amount isn’t correct.  

To appeal an overpayment decision, you need to fill out and submit a form called ‘SSA-561-U2 – Request for Reconsideration’. You have 60 days, or about two months, to submit an appeal. 

What is a Waiver? 

A waiver is a request to excuse (or ‘waive’) some or all of your overpayment. If you feel that it is not your fault for causing the overpayment, you cannot afford to pay it back, or think it is unfair to pay it back, you can ask Social Security to waive collecting that money back from you.  

You can request that Social Security excuse the overpayment by filling out and submitting the form called ‘SSA-632-BK – Request for Waiver of Overpayment Recovery’. Unlike submitting an appeal, there is no time limit for filing your waiver form.  

If your overpayment is $2,000 or less, you can skip the form and request that the entire amount be waived over the phone. You can do so by calling 1-800-772-1213 or calling your local Social Security office. Sometimes, Social Security staff can help you faster over the phone.

Tips to Avoid Overpayment Issues & Stress 

Getting an overpayment notice can be stressful or unclear. Here are some ways to avoid overpayment: 

• Do your best to tell Social Security when you have any important life changes, including changes to your work and how much money you make.  
• If you receive Supplemental Security Income (SSI), tell Social Security of any changes to your income, resources, and living arrangements. 
• Keep track of how much Social Security sends you each month. If you notice you got more money than you usually do, check with a trusted friend or family member to see if it is right. If you’re still unsure, you should contact the Social Security Administration. It’s better to check and return it than to have to return money you’ve already spent. 
• Stay up to date on any changes to the Social Security Administration’s overpayment policies. You can do so by visiting SSA.gov or following them on social media. 

Your Rights & More Help 

Everyone has a right to submit the appeal or waiver forms mentioned above.  

Social Security Administration has information on requesting reconsideration or waiver of overpayment recovery on their website.  

For more information, contact your local SSA office or the SSA phone helpline: 1-800-772-1213, Monday through Friday from 8 a.m. to 7 p.m. Wait times to speak to a representative are typically shorter Wednesday through Friday or later in the day.