Getting an overpayment notice is stressful, but you may not have to pay it back. An overpayment waiver can forgive the debt if you qualify. Here's how to request one.
In this article, we'll cover:
- What an overpayment waiver is
- Qualifying for a waiver
- How to request a waiver
- What to do while waiting
1. What an Overpayment Waiver Is
The basics:
- Request to not pay back the overpayment
- SSA can forgive the debt
- Must meet specific criteria
- Different from an appeal
Waiver vs. appeal:
- Appeal: You don't owe the money (SSA made a mistake)
- Waiver: You may owe it, but shouldn't have to pay
- Can request both
- Different forms and processes
When to request:
- You received an overpayment notice
- You believe you shouldn't have to pay
- You weren't at fault
- Paying would cause hardship
What happens with waiver:
- If granted: You don't have to pay
- If denied: You must repay
- Can appeal denial
- May negotiate payment terms
2. Qualifying for a Waiver
Two-part test: You must show BOTH:
- You were not at fault for the overpayment, AND
- Recovery would be:
- Against equity and good conscience, OR
- Defeat the purpose of the program
"Not at fault" means:
- You didn't cause the overpayment
- You didn't know you were overpaid
- You believed payments were correct
- You reported as required
You ARE at fault if:
- Made false statements
- Failed to report changes
- Knew or should have known payments were wrong
- Didn't follow rules
"Against equity and good conscience":
- You gave up something valuable relying on the payment
- You changed your position because of it
- You relied on SSA's information
"Defeat the purpose":
- Repaying would leave you without necessary living expenses
- Would cause financial hardship
- Can't afford basic needs if you repay
Important: You must meet BOTH parts—not at fault AND one of the recovery conditions.
3. How to Request a Waiver
Step 1: Get the right form
- Form SSA-632: Request for Waiver of Overpayment Recovery
- Available online at ssa.gov
- Or at local Social Security office
- Or call to request by mail
Step 2: Complete the form
- Explain why you weren't at fault
- Describe your financial situation
- List income and expenses
- Show why recovery is unfair or causes hardship
Step 3: Gather documentation
- Proof of income
- Bills and expenses
- Bank statements
- Medical expenses
- Any relevant evidence
Step 4: Submit the request
- Mail to local Social Security office
- Or submit in person
- Keep copy of everything
- Note the date submitted
Step 5: Wait for decision
- SSA reviews your request
- May contact you for more information
- Decision can take weeks to months
- Benefits may continue during review
4. What to Do While Waiting
Request withholding stop:
- Can request no recovery during waiver review
- Not automatic—must ask
- SSA may agree
- Especially if financial hardship
Continue other benefits:
- SSI continues (possibly reduced)
- Medicaid should continue
- Report any changes
- Keep up with requirements
If denied:
- Appeal the waiver denial
- 60 days to appeal
- Different process than original waiver
- Consider getting help
Negotiate repayment:
- If waiver denied
- Request lower monthly repayment
- Show financial hardship
- Standard is 10% of benefit
- Can request less
Tips for Success
Prove you weren't at fault:
- Show you reported changes
- Explain any confusion
- Document your communications
- Don't admit wrongdoing
Document financial hardship:
- List all monthly expenses
- Show income vs. expenses
- Include medical costs
- Be thorough
Explain the circumstances:
- Why payments seemed correct
- How you relied on them
- What changed
- Why you couldn't know
Get help:
- Legal aid organizations
- Benefits counselors
- Social services
- Don't navigate alone
How Purple Helps
- Track all transactions
- Clear record of income
- Document spending patterns
- Evidence for waiver request
- Stay compliant going forward