You Got a Social Security Overpayment Notice. Now What?
What is an overpayment?
When Social Security pays you more money than they should have, they call this an “overpayment.” Social Security will ask you to pay them back the extra money.
How does Social Security collect an overpayment?
Social Security will collect the money from your monthly benefit payment. They can take 10% of your payment each month. If you have an old overpayment and Social Security is taking more than 10% of your payment, you can call your local office and ask them to take only 10%.
If you do not get a Social Security payment, they can collect the money from your other benefits or wages. They can also take your tax refund.
What if I do not understand the overpayment?
Social Security must prove that they overpaid you and that the amount that they claim you owe is right. If the notice from Social Security does not explain this information in a way that you understand, then file an appeal. To appeal, use SSA Form 561, Request for Reconsideration. You must appeal within 60 days of the day you got the notice. If you have a good reason for appealing after 60 days, tell Social Security.
What if Social Security is wrong?
If you do not think that you owe Social Security or that Social Security is asking for more money than you owe, you can also appeal. To appeal, use SSA Form 561, Request for Reconsideration. You must appeal within 60 days of the day you got the notice. If you have a good reason for appealing after 60 days, tell Social Security.
What if Social Security caused the overpayment?
You can ask Social Security to waive the overpayment. If they waive the overpayment, then you do not have to repay it. You must prove that you were not “at fault” in creating the overpayment. For example, you reported your wages every month, but Social Security did not reduce or stop your payments when they should have. You also must prove that you cannot afford to pay the money back or it would be unfair for Social Security to make you repay. To ask for a waiver, use SSA Form 632, Request for Waiver of Overpayment Recovery. You can ask for a waiver at any time.
What if I cannot repay Social Security?
Social Security wants you to pay them back within 5 years. If you cannot afford to repay in 5 years, then you can ask Social Security for a monthly repayment amount that fits your budget. To ask for a lower monthly repayment amount, use SSA Form 634, the Request for Change in Overpayment Recovery Rate. You can ask for a lower monthly repayment amount at any time.
For more details, go to the Social Security website or check out this fact sheet from Social Security.
For more information, visit Tool 8, Overpayments, on the Disability Benefits at Work website.
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