An overpayment happens when you are on benefits, and you receive more than you should have been paid. If this happens, you will receive an overpayment notice by mail that explains why you were overpaid, your overpayment options, and your appeal and waiver rights. If you get SSDI, by default 100% of your monthly SSDI will be withheld until the overpayment is repaid unless you appeal, request a waiver, or request a lower monthly repayment amount. If you get SSI, by default your benefit will be reduced by 10% until the amount is repaid or until you appeal. Social Security will not try to collect the overpayment while the appeal is being processed.

Overpayments can happen for different reasons, including:

• Your income is more than you estimate, or you didn’t report your income
• You didn’t report work incentives that lower your countable income
• Your living situation or marital status changes
• You have more than $2,000 in countable resources (SSI only)
• Social Security makes a mistake

Overpayment Options

Option 1: Pay the Amount Requested

If you have the resources and ability to do so, you can pay the full amount requested and benefits will continue once the balance has been paid off. (Repay overpaid Social Security Benefits)

Option 2: Request a Reconsideration

If you do not agree that you were overpaid, or if you believe the amount is incorrect, you can complete a Request for Reconsideration, SSA-561 form. You should explain why you think you have not been overpaid or why you think the amount is incorrect. You have 60 days from the date you received the overpayment letter to request a reconsideration.

Option 3: Request a Waiver

If you agree that you were overpaid, but you don’t think you should have to pay it back because the overpayment was not your fault and you can’t afford to pay it back, you can complete a Request for Waiver of Overpayment Recovery, SSA-632 form. You should explain why the overpayment was not your fault and why you can’t afford to pay it back.

Option 4: Request a change in Recovery Rate

If you agree that you were overpaid and are willing to pay it back, but can’t afford to pay it back at the rate Social Security has told you, you can complete a Request for Change in Overpayment Recovery Rate, SSA-634 form. You will have to complete a financial statement and answer questions about your assets, income, and expenses. You will provide an amount that you can afford to pay; we recommend no less than $10/month.