If you owe Social Security money—whether from an overpayment, a benefits adjustment, or a misunderstanding—you might be worried about whether SSA can simply reach into your bank account and take what they say you owe. Here's what you need to know about how Social Security handles debts and what rights you have.
In this article, we'll cover:
- Whether Social Security can garnish your bank account
- How SSA overpayments happen and what triggers them
- The difference between SSI and SSDI overpayment recovery
- Your rights to appeal or request a waiver
- How SSA can withhold future benefits to recover overpayments
- Steps to take if you receive an overpayment notice
Can SSA Directly Access Your Bank Account?
In most cases, Social Security does not directly withdraw money from your bank account. However, SSA does have several tools to recover overpayments, and the methods differ depending on whether you receive SSI or SSDI.
For SSDI overpayments, SSA's primary method is to withhold a portion of your future benefits until the debt is repaid. The standard withholding rate is the full monthly benefit, but you can request a lower amount if full withholding would create financial hardship. If you've stopped receiving benefits entirely, SSA can refer the debt to the Treasury Department, which can then use tools like tax refund offsets to recover the money.
For SSI overpayments, SSA typically withholds 10% of your monthly SSI payment to recover the debt. This rate is designed to be manageable on a limited income, though you can request a different rate if even 10% would cause hardship.
How Overpayments Happen
Overpayments are more common than you might think. They can occur when income changes aren't reported on time (or at all), when resources exceed the SSI limit during a period you received benefits, when there are processing delays that result in you receiving benefits after you're no longer eligible, or when wages from a trial work period aren't properly accounted for.
Sometimes overpayments happen through no fault of your own—SSA may have made a calculation error or processed a change slowly. Regardless of the cause, once SSA determines you were overpaid, they'll send you a notice explaining the amount and how they plan to recover it.
Your Right to Appeal and Request a Waiver
You have important protections when facing an overpayment. First, you can appeal the overpayment if you believe SSA's calculation is wrong—for example, if you think you actually did report your income on time or that SSA miscounted your resources.
Second, and equally important, you can request a waiver of the overpayment. A waiver means SSA forgives the debt entirely. To qualify, you generally need to show that the overpayment wasn't your fault and that repaying it would cause you financial hardship or be "against equity and good conscience." If your request is granted, you don't owe anything.
You have 60 days from receiving the overpayment notice to file a waiver request or appeal. If you act within 30 days, SSA will generally stop recovery efforts while your request is being processed. Don't ignore overpayment notices—the sooner you respond, the more options you have.
What to Do If You Get an Overpayment Notice
Read the notice carefully and note the deadlines. If you believe the amount is wrong, gather documentation—bank statements, pay stubs, anything that supports your position—and file an appeal. If the amount is correct but you can't afford to repay, file a waiver request explaining your financial situation.
If you need help navigating the process, consider contacting a legal aid organization in your area that handles Social Security cases. Many offer free assistance to SSI and SSDI recipients.
Worried about overpayments and keeping your benefits on track? Purple is built specifically for SSI and SSDI recipients, with tools that help you monitor your account and stay compliant with Social Security's rules.