Receiving a letter from Social Security in the United States may seem alarming. However, if that letter mentions an overpayment, it's not a joke. It's a real notification that requires immediate attention.
When SSA detects that they have paid more money than they should have to a beneficiary, they send a letter or notification by mail explaining the overpayment. This covers how much the amount is, why it was caused, and what options you have to solve it. In the letter, SSA details how you can reimburse, appeal, or even request a waiver depending on your situation.
If you receive an overpayment notification, pay attention: SSA warns you
The first thing you should do when you receive that notification is pay attention and read it carefully. Knowing exactly what the letter says will help you understand the available options. If you don't act quickly, you could trigger an automatic deduction process from your monthly payments.
In general terms, you have three paths. If you accept that the overpayment is correct, you can proceed to reimburse the amount. SSA can withhold up to 10% of your monthly benefit (or $10 per month, whichever is greater).
You can also request that they deduct a smaller amount by completing form SSA-634 to adjust the recovery rate. If you no longer receive benefits, you can pay online, by check, or set up a payment plan.
You have the right to appeal this SSA decision
If you believe there was a mistake or that the overpayment is not fair, you can appeal (request for reconsideration). You have 60 days from the date of the letter to submit form SSA-561 and explain why you disagree. By submitting the appeal on time, SSA will halt deductions while they review your case.
Another option is to request a waiver. If you can show that it wasn't your fault and that paying would cause you financial hardship, you can request that they don't take the money or part of it. If the amount is less than or equal to $1,000 (or $2,000, depending on the program), you can handle it quickly by phone at 1-800-772-1213.
Respond to SSA or you could get into trouble
It's essential to react quickly. If you don't respond within the deadlines (generally 30 or 60 days), SSA could start automatically deducting from your benefits.
Meanwhile, in recent cases, the rules have changed: SSA can now withhold up to 100% of your benefit if the overpayment occurred after March 27, 2025, unless you request a waiver or a lower rate. That total withholding can leave you without income this month, something no one should take lightly.
After the deadline, SSA will begin deducting your payments. If you no longer receive benefits, they could turn to your tax refund, state payments, or even garnish your wages. They can also report you to credit bureaus if you default on a payment plan.