Opening a letter from Social Security that says you owe them money can be alarming—especially when you're living on a fixed income. SSI overpayment notices are more common than you might think, and understanding your options is essential to protecting your benefits and your financial stability.
In this article, we'll cover:
- What an SSI overpayment is and why it happens
- How SSA recovers overpayments from SSI recipients
- Your right to appeal if you disagree with the amount
- How to request a waiver so you don't have to pay it back
- Requesting a different repayment rate if you can't afford the standard withholding
- Important deadlines you need to know
What Is an SSI Overpayment?
An overpayment occurs when SSA determines that you received more SSI money than you were entitled to during a specific period. This can happen for many reasons: maybe your income increased and wasn't reported quickly enough, your resources went over the $2,000 limit during certain months, your living situation changed (like moving in with someone who provides support), or SSA made an administrative error in calculating your benefit.
Whatever the cause, SSA will send you a formal notice explaining the overpayment amount, the period it covers, and how they plan to recover the money.
How SSA Recovers Overpayments
For current SSI recipients, SSA's standard approach is to withhold 10% of your monthly SSI payment until the debt is repaid. On a 2026 individual payment of $994, that's about $99.40 per month—a meaningful amount when you're already on a tight budget.
If you've stopped receiving SSI, SSA may refer the debt to the Treasury Department for collection through other means, including tax refund offset (where your federal tax refund is applied to the debt). In rare cases, SSA may also pursue other collection methods.
Appealing the Overpayment
If you believe SSA's calculation is wrong—you think the overpayment amount is inaccurate or that you weren't actually overpaid—you can file an appeal (also called a "Request for Reconsideration"). You'll need to provide evidence supporting your position, such as bank statements, pay stubs, or records showing you reported changes on time.
Filing an appeal is different from requesting a waiver. An appeal says "I don't owe this money." A waiver says "I may owe it, but I shouldn't have to pay it back." You can pursue both simultaneously.
Requesting a Waiver
A waiver is often the most important option for SSI recipients facing an overpayment. To qualify for a waiver, you generally need to demonstrate two things: the overpayment was not your fault (you didn't intentionally withhold information or provide false data), and repaying the overpayment would be against equity and good conscience or would cause you financial hardship.
You request a waiver by filing SSA Form SSA-632 (Request for Waiver of Overpayment Recovery). Be thorough in explaining your financial situation—list all your monthly expenses, any debts you have, and why you can't afford to repay the overpayment while meeting your basic needs.
Critical Deadlines
Time matters with overpayment notices. If you file your appeal or waiver request within 30 days of receiving the notice, SSA will generally stop withholding from your SSI payments while your request is being processed. If you wait longer than 30 days (but within 60 days), SSA may begin recovery while your request is pending.
Don't set the letter aside and deal with it later—the sooner you respond, the more protection you have. If you need help, contact a legal aid organization that handles Social Security cases. Many provide free assistance to SSI recipients.
Lowering Your Repayment Rate
Even if you don't qualify for a waiver, you can request that SSA reduce the withholding rate below 10% of your monthly payment. If the standard withholding would prevent you from meeting basic needs like food, shelter, and medical care, SSA may agree to a lower amount. You'll need to provide a detailed breakdown of your monthly expenses.
An overpayment notice doesn't have to derail your finances. Purple gives SSI recipients the tools to track their income, resources, and benefits—helping you stay compliant and catch issues before they become overpayments.