Social Security overpayment notice: what to do
Also called a Notice of Overpayment, or a letter saying you were paid more than you were due.
The short version: Social Security is saying it paid you more than you should have received, and it wants the money back. You have options, and they have deadlines. The most important one is 30 days — if you file an appeal, a waiver request, or a request for a lower payment rate within 30 days of the notice date, Social Security generally will not take money out of your checks while it reviews your case. Do nothing for about 90 days and it starts withholding automatically.
First: this does not mean you did something wrong
Overpayment notices frighten people, and the wording does not help. But a large share of overpayments are not caused by the person receiving them. They happen because of processing delays at Social Security, because a change was reported but not applied for months, or because of an agency calculation error. The notice is a bill, not an accusation, and being at fault or not at fault matters enormously to what happens next.
Why you got this
Why you got this
Social Security runs retirement, survivors, and disability benefits, along with SSI, a separate needs-based programme. An overpayment happens when the amount you received does not match what the rules say you were due for that period.
Common causes:
Common causes:
- Your income or work activity changed and the benefit amount was not adjusted right away
- Your living situation, marital status, or household changed
- For SSI, your countable resources went over the limit
- Social Security made an error in calculating or processing your payments
- A change you did report was not processed for several months, so the extra payments kept arriving
Which program you are on matters, because the rules differ. Title II covers retirement, survivors, and SSDI. SSI (Supplemental Security Income) is a separate program with separate rules. Your notice will indicate which one it concerns.
Your three options
These are different requests answering different questions, and you can file more than one.
| Form | What it argues | Use it when |
|---|---|---|
| SSA-561 Request for Reconsideration |
The debt is wrong — either it did not happen, or the amount is incorrect | You think they made a mistake |
| SSA-632 Request for Waiver |
The debt is real, but it was not my fault and I cannot afford to repay it | You agree it happened but repaying would hurt |
| SSA-634 Request for Change in Recovery Rate |
The debt is real and I will repay it, but not at that rate | You accept it but the monthly amount is unaffordable |
Filing the reconsideration and the waiver together is often sensible: they are separate arguments, and if the first fails the second is still considered.
The waiver, in more detail
A waiver can wipe out the debt entirely. Two things have to be true: the overpayment was not your fault, and repaying it would either cause you financial hardship or be unfair. You document your income and expenses on the form to show the second part.
Two things worth knowing about waivers. There is no deadline — you can request one at any point, even after collection has started. And when deciding whether the overpayment was your fault, Social Security is supposed to take into account your circumstances, including disability, age, and how well you could reasonably have been expected to understand the rules.
If the amount is $2,000 or less and you were not at fault, there is a simplified waiver process that can be started over the phone on 1-800-772-1213 rather than by filling in the full form.
Deadlines to watch
30 days — file a waiver, reconsideration, or rate-change request within 30 days of the notice date and collection is generally paused while your case is reviewed. Nothing comes out of your check in the meantime. This is the deadline that protects your money.
60 days — the deadline to formally dispute whether the overpayment is correct. Miss it and you generally lose that right unless you can show good cause for being late, such as hospitalization or never having received the notice.
About 90 days — if you have filed nothing, automatic withholding begins.
How much they take if you do nothing
For Title II benefits (retirement, survivors, SSDI), the default is 50% of your monthly benefit, applying to notices issued from 25 April 2025 onward. For SSI, the default is 10% of the monthly payment.
This rate has changed repeatedly and there is a lot of outdated information circulating. It was full withholding until March 2024, then 10%, then briefly announced as 100% in March 2025, then settled at 50% weeks later. If you read somewhere that the rate is 10% or 100%, that guidance is out of date for Title II. The date on your notice determines which rules applied when it was issued.
The 50% figure is a default, not a fixed rule. If it would leave you unable to cover basic living costs, the SSA-634 exists precisely to negotiate it down, and much lower rates can be approved where the financial documentation supports it.
What happens if you ignore it
Withholding starts automatically at the default rate. Beyond that, unpaid balances can be pursued through interception of federal tax refunds, reporting to credit bureaus, and referral to the Treasury for collection. None of that begins immediately, but none of it goes away by itself either.
The single worst outcome is doing nothing for 90 days, since that forfeits both the pause on collection and, after 60 days, the right to dispute the debt. Filing something — anything — early is far better than filing the perfect thing late.
Is this letter real, or a scam?
Overpayment notices are heavily impersonated, because they create panic about money. Signs of a fake:
- It demands payment by gift card, wire transfer, cryptocurrency, or a payment app. Social Security never does this.
- It threatens immediate arrest, or that your benefits stop today unless you pay on the call.
- It arrives as a text or social media message with a link.
- It asks you to confirm your Social Security number to "verify" the debt.
A real notice explains your appeal and waiver rights and gives you time. If you are unsure, do not use the contact details in the message — call Social Security on 1-800-772-1213, or check your my Social Security account directly.
Free help exists
You do not have to handle this alone, and you do not have to pay someone. Every state has a legal aid organisation, and many handle Social Security overpayment cases at no cost. If you receive SSDI or SSI, the WIPA programme and Protection and Advocacy for Beneficiaries of Social Security also provide free assistance. These services are worth using, particularly if the amount is large.
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Sources
- Understanding SSI — Overpayments (SSA)
- EM-25029 REV — Change to Title II Overpayment Default Benefit Withholding Rate to 50 Percent (SSA)
- Title II and Title XVI Overpayments (Disability Rights California)
MyPlainLetter is an independent service. It is not affiliated with, authorized by, or endorsed by the Social Security Administration or any other government agency. This page is general information about how overpayment notices work — it is not legal or benefits advice. For a decision about your own case, contact Social Security or a free legal aid service.