How to Avoid SSI Overpayments and Repayment Requests

If you receive Supplemental Security Income (SSI), the last thing you want is an overpayment notice from the Social Security Administration (SSA). Overpayments can result in benefit reductions, repayment demands, or even financial hardship. Fortunately, you can take steps to prevent overpayments, handle SSA mistakes, and navigate repayment options.

In this guide, we’ll cover why SSI overpayments happen, how to avoid them, and what to do if you receive an overpayment notice.

1. What Is an SSI Overpayment?

An SSI overpayment occurs when SSA pays you more than you were eligible for in a given month. This can happen for many reasons, and SSA will ask you to repay the excess amount.

📌 Common Overpayment Amounts: Some overpayments are small (a few hundred dollars), while others can be thousands of dollars if left unresolved for months.

2. Common Causes of SSI Overpayments

Understanding why overpayments happen is the first step to avoiding them. Here are the most common reasons:

A. Unreported Income Changes

• If your earned or unearned income increases, SSA needs to adjust your SSI payment.

• Example: You get a part-time job but forget to report your wages.

B. Living Arrangement Changes

• If you move in with someone who helps pay rent, SSA may count this as in-kind support and maintenance (ISM) and lower your benefit amount.

• Example: A family member starts covering your utilities, which SSA considers income.

C. Exceeding the SSI Asset Limit

• SSI has strict resource limits:

  • $2,000 for individuals

  • $3,000 for couples

• Example: You receive an unexpected cash gift and your bank account goes over the limit.

D. Social Security Administration Errors

• SSA miscalculates your benefits or fails to process reported changes in time.

• Example: You report income, but SSA doesn’t update your records until months later.

E. Failure to Report Marriage or Relationship Changes

• Marriage can impact SSI eligibility if your spouse’s income is counted toward yours.

• Example: Your partner earns above the threshold, reducing your SSI amount.

3. How to Prevent SSI Overpayments

The best way to avoid overpayments is to stay proactive. Here’s what you can do:

✅ Report income and living changes immediately

• You can report wages to SSA online, by phone, in person, or via the SSI Mobile Wage Reporting app.

• Always keep records of wage reports (screenshots, emails, or written confirmations).

✅ Check your bank balance regularly

• Make sure you stay below the SSI asset limit ($2,000 for individuals, $3,000 for couples).

• Consider using an ABLE account to save money without impacting benefits.

✅ Monitor SSA benefit letters closely

• Review your payment amount and eligibility updates to ensure SSA calculations are correct.

✅ Use Purple to track income and spending

• Purple helps you monitor your income and expenses to avoid going over SSA limits.

4. What to Do If You Receive an Overpayment Notice

If SSA says you’ve been overpaid, don’t panic. You have several options:

Option 1: Request a Waiver (If the Overpayment Was Not Your Fault)

• If you weren’t at fault and can’t afford to repay, you can ask SSA to waive the overpayment.

• File Form SSA-632 (Request for Waiver of Overpayment Recovery) and explain your financial hardship.

Option 2: Appeal the Overpayment Decision

• If you believe the overpayment is incorrect, you can file an appeal within 60 days.

• Use Form SSA-561 (Request for Reconsideration) and submit supporting documents.

Option 3: Set Up a Repayment Plan

• If you can’t afford to repay all at once, SSA allows small monthly payments.

• Call 1-800-772-1213 to negotiate a payment plan based on your income.

5. Stay on Top of Your SSI Payments with Purple

Avoiding SSI overpayments requires careful tracking of income, assets, and benefit notices. Purple makes it easy to monitor your finances, stay under SSA limits, and report changes on time.

💜 Want to avoid SSI overpayments? Get started with Purple today and keep your benefits on track!