How to Deal With Your Social Security Overpayment Letter

Important: We updated this article in July 2024 after fact checking against current Social Security Administration policies. Receiving a Social Security overpayment letter can be quite upsetting — especially for individuals whose monthly benefits are their only income. Still, both Supplemental Security Income (SSI) and Social Security disability insurance (SSDI) beneficiaries may occasionally receive one in the mail.

But just because you receive one doesn’t mean you’re at fault for the error. Nor does it mean that you absolutely must pay any overpayment balance back the agency says that you owe them. We’ll explain all your options on how to address the amount of the overpayment if you cannot afford to pay the SSA back below.

Understanding How A Social Security Overpayment Can Happen

While these letters aren’t common, they typically show up when you fail to report changes that could affect your benefit amount. This is true no matter what type of Social Security benefit you currently receive, including:

• Regular Social Security benefits because you either retired early or at the normal age of 67
• SSI payments because you’re blind, disabled, or at least 65 years old
• SSDI payments because you’re disabled

In most cases, these overpayment notices allege that the Social Security Administration (SSA) paid you too much money in benefits. Fortunately, the SSA’s calculations aren’t always correct, so you may not have to pay the entire overpayment amount due. Regardless of your individual situation, there’s still a process to follow after you receive one.

Important: If you’re no longer disabled and start working again, you must tell the SSA. Failing to report earnings while getting benefits essentially guarantees you’ll receive a Social Security overpayment letter in the mail.

4 Reasons People With an SSI Check May Get an Overpayment Notice

1. Your living situation or marital status changed since your SSI payments began. In other words, if you started drawing an SSI payment as a single person, the SSA needs to re-evaluate your case after marriage. The same is true if you qualified for SSI while married, then divorced and moved in with a relative. Pro Tip: Common law marriage can also trigger this type of overpayment notice in certain states.
2. You own more resources than the $2,000 maximum allowable limit ($3,000 for couples). For example: Your brother passes away and leaves you his car, which you then sell to a friend for $4,000 to deposit in the bank.
3. The SSA calculated your original SSI payment amount wrong because they based it on incorrect or incomplete information. An example of this would be forgetting to mention that you live rent-free with a relative instead of on your own.
4. You fail to report any increase in earned or unearned income to the SSA in a timely manner. This can happen when your child support payments go up due to your ex getting a raise at work, or something similar.

2 Reasons SSDI Recipients Get Overpayment Letters from the SSA

1. Spending more than 30 days in jail or prison for a criminal offense. Anyone jailed or imprisoned for more than one month cannot keep getting SSDI payments, according to federal law.
2. You earned more money than you’re allowed to have in monthly income during the trial work period with the Ticket to Work program. While you can work for up to 9 months without losing your benefits, your pay stubs may count towards your income limit of $1,550.

Three Ways You Can Respond to Your Social Security Overpayment Notice

Option #1: Pay Back the Full Amount of the Overpayment Balance Within 30 Days

The most clear-cut response to an overpayment notice is to pay the amount requested within 30 days. The letter itself will provide your instructions on how to make the repayment directly to the SSA as requested. Can’t find your mailed notice? Check this guidance from the SSA on overpayments.

While this may be the simplest solution, it doesn’t account for the SSA’s potential miscalculations involving your benefit amount. If the SSA made a mistake, it’s incredibly difficult to get your money back after the payment’s already processed.

Option #2: Submit a Request for Reconsideration to the Social Security Administration Within 60 Days

You have 60 days to submit a reconsideration request and appeal the SSA’s notice of overpayment. However, you’re better off filing an appeal within the first 10 days from the date on your mailed notice. If you do, the SSA won’t make any balance recovery attempts until after reviewing your file. Waiting any longer gives the SSA time to begin their overpayment recovery process. This process usually involves reducing or eliminating your monthly benefits until you repay the full amount you owe. So if you’re just barely getting by each month, file your appeal during that initial 10-day window!

Here’s everything you need to know before you request a reconsideration from the SSA to appeal:

Ask Someone at Your Local Social Security Office to Explain Why the SSA Believes They Overpaid You

While your Social Security overpayment letter may list a reason why you owe it, it might be unclear to you. The best way to understand why you received this letter is to speak with someone at your local Social Security office. In fact, you can ask to see your own file and information used to calculate your overpayment amount. We can also connect you with a disability attorney who can answer your overpayment questions for free.

Once You Understand the Reason, Submit a Request for Reconsideration within 60 Days

Along with the Request for Reconsideration Form 561, write a letter explaining why you believe this Social Security overpayment isn’t accurate. Also, make a copy of your overpayment notice to include with your reply and keep the original for your records.

After submitting your appeal, you’ll typically wait 4-6 weeks to hear back from the SSA. If the SSA denies your appeal, schedule a free consultation with a disability attorney near you. Attorneys can review your documents and explain how best to proceed, especially if you cannot afford to repay it.

Option #3: Ask for a Waiver of Overpayment Recovery Form if You Cannot Afford to Pay the Balance Due

Many disability advocates think you should always ask for a waiver from the SSA, especially for balances of $1,000 or less. If approved, you may avoid paying back some or all of the total balance the SSA says that you owe. There’s no time limit to file form SSA-632-BK, but in order to get your waiver request approved, you must:

1. Convince the SSA that the overpayment wasn’t your fault. In other words, you must show proof you didn’t intentionally withhold information the SSA needs to accurately calculate your benefits. If you failed to disclose anything that would reduce your payments, even on accident, this step gets much, much harder.
2. Prove that paying this money back would make you unable to afford ordinary living expenses, such as rent, medicine, or food. To do this, you must submit documents showing your income level and resources. (Some commonly used documents include wage statements, tax returns, bills, mortgage statements, grocery and rent receipts, etc.) If paying the money back puts you at risk for homelessness, then the agency will most likely approve your waiver request.

When All Else Fails, Request A Payment Plan

Even if you’ve exhausted every option listed above, you don’t have to pay it back all at once. Instead, ask the SSA to withhold a certain amount from your monthly benefit income until you repay all the money you owe. The SSA will reduce or stop your payments to recover the balance owed unless you request a payment plan.

Talk to a Disability Lawyer for Free About Your Situation

Still have questions about your Social Security overpayment notice? Click the button below to connect with a local disability lawyer for a free consultation over the phone. This case review is always free, and won’t require you to do anything else.

Thinking about filing for disability benefits? You’re nearly 3x more likely to get your first payment within 6 months while working with an attorney.

If an attorney cannot help you secure disability benefits, then you owe $0 for legal assistance. And if a lawyer does help you win, then you only owe one small fee afterwards.

Want to speak with someone who understands what you’re going through? Click the button below to start your free online disability benefits quiz and see if you may qualify for legal assistance:

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