In April of 2025, the Social Security Administration announced that it would withhold 50% of Social Security benefits from recipients who were overpaid. Social Security benefits recipients had 90 days to request a waiver or reconsideration from the Social Security Administration. It is now July, and if you received a withholding notice in April, your grace period is almost over. If you haven’t taken action up until this point, the Social Security Administration will withhold 50% of your benefits until the overpayment is recovered. Here are some steps you can take to keep this from happening to you next month.
File a Request for Reconsideration Form
One thing you can do is file a Request for Reconsideration form. This means you’re asking the Social Security Administration to review your case again. On the form, explain why you don’t believe you were overpaid in benefits. You may not have this option if you waited too long, because you have 60 days from the date of your overpayment notice to use this form. However, if you just received your overpayment notice, you can still use this option. You can file at your local SSA office. On the form, also explain how the withholding will cause financial hardship.
Request a Waiver
You can also request a waiver of your Social Security overpayment. You’ll need to explain why the overpayment isn’t your fault. Maybe you reported all changes in income and living situation, and the SSA made an error in how they handled your case. Or maybe you weren’t told about the reporting requirements. If you’re denied the first time, arrange for a meeting at the local SSA office. If you’re denied again, request an administrative hearing. Once you get the waiver, you won’t have to pay the overpayments.
Get On A Payment Plan
Another option is to get on a payment plan. You’ll fill out the Request for Change in Overpayment Recovery Rate. (Form SSA-634.) On the form, you’ll enter the amount you owe and how much you can afford to repay. The form will also ask you to submit evidence of your claims such as rent or mortgage agreements, recent bank statements, your most recent tax returns, and pay stubs.
How To Avoid Overpayment
To avoid overpayment, you should always report any changes in your income, marital status, resources, assets, and living situation. For example, if you accumulated a significant amount of assets or resources while receiving benefits, this may cause an overpayment. Or if you experienced an increase in income that exceeds what is allowed to still receive benefits while employed, it may lead to an overpayment.
You can work while receiving Social Security benefits, but you must report your wages within the first six days of the month for the money you earned the previous month. Keep solid records of all of your pay stubs and earnings throughout the year because this serves as evidence if you need to prove you weren’t overpaid. If your spouse works, you must also report their wages. The income you must report includes:
- Child support
- Unemployment benefits
- Self-employment income
- Lottery winnings
- Pensions
Overpayments can also happen because of administrative issues and delays in processing the information you report. It’s crucial to review your statements for accuracy. Contact the Social Security Administration to report errors and keep communicating until the mistakes are fixed.
Research the latest rules and any new legislation concerning Social Security benefits. Visit www.ssa.gov to learn more about what to do to avoid overpayments. Watch YouTube videos and podcasts on this topic. Talk to relatives and friends who currently receive benefits if you’re getting them for the first time.
How to Maintain Good Records for Social Security
By maintaining good records, you’ll be at less risk of overpayment. Create a mySocialSecurity account and then file the Request for Social Security Earning Information. The SSA says you should wait 120 days before you inquire about what you requested. On your earnings statement, you’ll see your earnings by year and an estimate of your future earnings. Gather your W-2 forms and tax returns to see if the information on your earnings matches the W-2 forms and tax returns.
Conclusion
Facing a Social Security overpayment notice can feel like a sudden, heavy blow, particularly for individuals who rely on these benefits for their fundamental needs. It’s easy to feel overwhelmed, confused, and even fearful when confronted with demands for repayment, especially if the overpayment was not your fault or if repaying it would plunge you into financial despair. But you have options, and one of these options can assist you with this situation. If necessary, hire an experienced lawyer who can help you appeal the overpayment.