Getting a letter from Social Security saying you've been overpaid — and that you owe hundreds or even thousands of dollars — is one of the most stressful things that can happen when you're living on disability benefits. But an overpayment notice doesn't mean you have no options. You have rights, and understanding them can make a huge difference in how this plays out.
In this article, we'll cover:
- What a Social Security overpayment is and why it happens
- How much SSA can withhold from your check to recover an overpayment
- Your right to request a waiver so you don't have to pay it back
- How to appeal if SSA made a mistake calculating the overpayment
- Recent changes to overpayment recovery rates that may affect you
- Steps to take immediately after receiving an overpayment notice
What Is a Social Security Overpayment?
An overpayment occurs when Social Security pays you more in SSI or SSDI benefits than you were entitled to receive. This can happen for many reasons: you didn't report income on time, your living situation changed, your resources went over the limit, SSA made an error processing your case, or there was a delay between when your circumstances changed and when SSA adjusted your payments.
The most common triggers for SSI overpayments are unreported income and exceeding the $2,000 resource limit ($3,000 for couples). For SSDI, overpayments often happen when someone is working above the substantial gainful activity (SGA) limit of $1,690 per month in 2026 and doesn't report it promptly. But it's worth knowing that SSA errors account for a meaningful share of overpayments too — this isn't always the beneficiary's fault.
How Much Can Social Security Take From Your Check?
When SSA determines you've been overpaid, they'll send you a notice explaining the amount and how they plan to recover it. For SSI recipients, SSA can withhold 10% of your monthly benefit to recoup the overpayment. For SSDI recipients, the recovery rate has recently been a topic of significant change. SSA had previously increased the default withholding rate to 100% of monthly benefits, but after public outcry, they have been adjusting these policies. As of early 2026, SSA is working to restore a lower default withholding rate, but your specific situation may vary — which is why it's critical to respond to any overpayment notice quickly.
You can also request a reduced repayment rate if the standard withholding would cause you financial hardship. SSA will consider your income, expenses, and overall financial situation when deciding whether to lower the monthly amount they take.
How Far Back Can Social Security Go for Overpayment?
There is no strict statute of limitations on SSA collecting overpayments. In theory, they can go back many years to identify periods where you were overpaid. However, there's an important exception: if the overpayment happened more than a certain number of years ago and you weren't at fault, you have stronger grounds for a waiver. The length of time involved can also work in your favor during the waiver review process, since SSA considers whether it would be "against equity and good conscience" to make you repay very old debts.
Your Right to Request a Waiver
This is the most important thing to understand about overpayments: you can ask SSA to waive the overpayment entirely so you don't have to pay it back. To qualify for a waiver, you generally need to show two things. First, the overpayment wasn't your fault — meaning you didn't knowingly provide incorrect information or fail to report something you knew you should report. Second, paying it back would either deprive you of funds needed for ordinary living expenses or would otherwise be "against equity and good conscience."
To request a waiver, you'll file SSA Form 632 (Request for Waiver of Overpayment Recovery). Be thorough when filling this out. Include details about your monthly income and expenses, explain why you believe the overpayment wasn't your fault, and describe the financial hardship that repayment would cause. If your monthly expenses are close to or exceed your income — which is the case for many SSI recipients — you have a strong argument for waiver.
Your Right to Appeal
If you believe SSA made an error — they calculated the wrong amount, they got the dates wrong, or the overpayment didn't actually occur — you can file an appeal called a Request for Reconsideration. This is different from a waiver. An appeal says "this overpayment isn't real or isn't the right amount." A waiver says "the overpayment happened, but I shouldn't have to pay it back."
You have 60 days from receiving the overpayment notice to file an appeal. If you file within 30 days, SSA generally won't start withholding from your benefits until the appeal is decided. This is critical — if you wait too long, they may start recovering the overpayment from your checks while you're still fighting it.
Can Social Security Take Your Whole Check for Overpayment?
For SSI, no — they're limited to 10% of your federal benefit rate unless you agree to a higher amount. For SSDI, the rules have been changing. There have been cases where SSA withheld 100% of SSDI benefits for overpayment recovery, which sparked significant backlash and Congressional attention. If you're facing full withholding of your SSDI check, request a reduced repayment rate immediately and consider requesting a waiver simultaneously.
What to Do Right Now If You Got an Overpayment Notice
Don't panic, but don't ignore it either. Read the notice carefully to understand the amount, the time period, and the reason SSA gives for the overpayment. Decide whether you want to appeal the amount (if you think it's wrong) or request a waiver (if you think it happened but wasn't your fault). File your appeal or waiver request within 30 days to prevent SSA from starting recovery. Keep copies of everything you submit. Consider contacting your local Legal Aid office — many have SSI/SSDI specialists who can help with overpayment cases for free.
If the overpayment happened because your bank account went over the resource limit, this is a good time to look into tools that can help you track your resources going forward. An ABLE account can shelter up to $20,000 per year in savings without it counting toward the $2,000 SSI resource limit, and keeping a clear picture of your account balances can prevent future overpayments.
Staying on top of your SSI resource limit is one of the best ways to prevent overpayments. Purple's checking account is designed for SSI and SSDI recipients with built-in tools to help you monitor your resources and stay compliant.