What are Social Security Overpayments?
Disability Rights Florida
Advocacy. Equity. Dignity. FL’s statewide designated protection and advocacy system for individuals with disabilities.
Over the past year, the Social Security Administration has addressed improper benefit payments called overpayments. Depending on the situation, the person receiving money must pay the overpayment back to Social Security. To protect your finances and avoid issues with Social Security, read our blog to learn about what overpayments are, the Social Security Administration’s new plan to address improper payments, and how to lessen the impact of overpayments, and how you can be ready if an overpayment happens.
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.?
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What Can Cause an Overpayment???
Overpayments can happen for a few different reasons:?
What are the New Rules for Overpayments??
In March of 2024, the Social Security Administration announced four key updates to address improper payments. You can read their Press Release on the Social Security website.??
1: Keeping 100% to Now Only 10%?
Before: If you got overpaid and didn't respond to Social Security's request to be paid back, they would take the overpayment from your monthly Social Security benefit until it was paid back. ?
Now: If you are overpaid and don't respond to SSA's request to pay back the overpaid funds, SSA will withhold 10% of your monthly benefits moving forward.?
2: Shifting the burden of proof??
Before: You had to prove that you did not receive more money than you should have.?
Now: The Social Security Administration will have to prove that they overpaid you.???
3: Repayment Plans Extended to 60 months?
Before: People only had 36 months (about three years) to repay funds.??
Now: You can request repayment plans for up to 60 months (about five years). If you were in a repayment program before and during the changes in March, the 60-month plan is still an option for you.????
The repayment plan process is now easier also. SSDI recipients will only need to provide a verbal summary of their financial situation, and SSI recipients do not need to provide any income information.?
4: Easier Waiver Requests?
The Social Security Administration will make it easier for beneficiaries to request waivers for repayments if they can't afford them or if the overpayment was not their fault.?
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.??
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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.?
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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.
Repayment Options?
Social Security reviews every waiver request to see if you caused the debt and your ability to pay the overpayment. If Social Security decides that they will not waive the debt and that you need to repay it, there are flexible repayment options.???
Since the updates in March of this year, the Social Security Administration will not withhold more than 10% of your monthly benefits or $10, whichever is more, to act as your monthly payment towards repaying.???
If you want a lower repayment plan, you must fill out and submit form ‘SSA-634-BK – Request for Change in Overpayment Recovery Rate’. You can request this lower repayment rate if you requested a waiver or not – everyone has the option to request a lower repayment option.???
If you qualify for full subsidy of Medicare Part D premiums, you qualify for a $10 repayment plan. You must contact Social Security to ask for this.??
Tips to Avoid Overpayment Issues & Stress?
Getting an overpayment notice can be stressful or unclear. Here are some ways to avoid overpayment:?
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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.?