SSA Overpayments: What to Do If Social Security Says You Owe Money

How to Handle an SSI or SSDI Overpayment Notice

Introduction: What Happens If SSA Says You Were Overpaid?

If you receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), you may be shocked to receive a letter from the Social Security Administration (SSA) saying you were overpaid and now owe money back.

📑 Why did SSA overpay me?

📑 Do I have to repay an overpayment if it wasn’t my fault?

📑 Can I appeal an overpayment notice?

The short answer:

✔ SSA overpayments happen when they send you more benefits than you were supposed to receive.

✔ You have the right to appeal or request a waiver if the overpayment wasn’t your fault.

✔ If you must repay, SSA offers payment plans to make it manageable.

In this guide, we’ll cover:

✅ What causes Social Security overpayments

✅ How to appeal or request a waiver

✅ What to do if you can’t afford to repay SSA

✅ How to prevent overpayments in the future

✅ How Purple helps track payments & avoid SSA errors

Let’s break it all down!

1. What Is an SSA Overpayment?

An SSA overpayment happens when Social Security gives you more money than you were supposed to receive.

📌 Example: If your SSI payment should have been $500 but SSA sent you $750, the extra $250 is an overpayment.

✔ SSA will send a letter explaining:

How much they say you were overpaid
Why the overpayment happened
Your options for appeal or repayment

💡 Even if the overpayment wasn’t your fault, SSA still expects repayment unless you qualify for a waiver.

2. What Causes Social Security Overpayments?

Overpayments can happen for many reasons, including:

✔ 1. Reporting Issues

Not reporting income changes (wages, SSDI, or pension).
Failing to report marriage, living arrangements, or resources (SSI only).

📌 Example: You started a part-time job, but SSA wasn’t updated. Your SSI should have been reduced, but they kept sending full payments.

✔ 2. SSA Processing Delays

SSA made a mistake calculating your benefits.
Your benefits should have stopped, but SSA kept paying you.

📌 Example: You were approved for SSDI back pay but SSA mistakenly sent too much money.

✔ 3. Work & Earnings Above the Limit

SSDI: If you earned more than Substantial Gainful Activity (SGA) limits ($1,550/month in 2024, or $2,590 if blind).
SSI: If your income exceeded the allowed amount for SSI.

📌 Example: You returned to work, but SSA didn’t stop your benefits in time.

✔ 4. Changes in Living Situation (SSI Only)

Free rent, receiving financial help, or moving in with family could change SSI eligibility.

📌 Example: Your roommate started paying half your rent, but SSA still counted you as paying full rent.

3. What to Do If You Receive an SSA Overpayment Notice

If you get a letter from SSA saying you owe money, don’t ignore it! You have options:

✔ Step 1: Verify the Overpayment

📌 Check SSA’s math—mistakes happen!

Compare SSA’s numbers to your bank statements and income records.
If you believe SSA is wrong, you can appeal.

✔ Step 2: Appeal the Overpayment (If You Disagree)

You have 60 days to appeal SSA’s decision if you believe you were not overpaid.
Use Form SSA-561 (Request for Reconsideration) to appeal.

📌 How to Submit an Appeal:

📲 Online: SSA Appeals

📞 By Phone: Call SSA at 1-800-772-1213

🏢 In Person: Visit your local SSA office

💡 SSA may waive the repayment if they made an error.

✔ Step 3: Request a Waiver (If You Can’t Afford to Pay It Back)

✔ If the overpayment was not your fault, and repayment would cause financial hardship, you can request a waiver.

📌 Use Form SSA-632 (Request for Waiver of Overpayment Recovery).

✔ If your waiver is approved, you won’t have to repay SSA.

💡 SSA often approves waivers if repaying would cause hardship (e.g., paying rent, food, or medical expenses).

✔ Step 4: Set Up a Repayment Plan (If You Must Pay It Back)

✔ If you must repay, SSA allows monthly payment plans as low as $10 per month.

✔ Use Form SSA-634 (Request for Change in Overpayment Recovery Rate) to lower payments.

📌 SSA may withhold part of your SSI/SSDI check if you don’t request a payment plan.

💡 Always request a repayment plan if you can’t afford to repay in full!

4. What Happens If You Ignore an SSA Overpayment?

⚠️ If you ignore an overpayment notice, SSA may:

Reduce or withhold future SSI/SSDI payments.
Take your tax refund or stimulus payments.
Send your debt to collections (affecting your credit score).

📌 Always respond to SSA overpayment notices ASAP!

5. How to Prevent Future SSA Overpayments

✔ Report Changes in Income or Living Situation Immediately

SSI recipients: Report wages & living changes every month.
SSDI recipients: Report work earnings if you go over the SGA limit.

✔ Use SSA’s Online Reporting Tools

Wage Reporting App: SSA Mobile Wage Reporting
My Social Security Account: SSA.gov

✔ Keep Proof of All Reports to SSA

Save copies of income reports, SSA letters, and payment confirmations.

💡 If SSA makes an error, having proof can help appeal overpayments.

6. How Purple Helps Manage SSA Overpayments & Disability Benefits

💜 Track SSI & SSDI Deposits – Know exactly when your disability check arrives.

💜 Monitor Work Earnings – Avoid exceeding SSA’s income limits.

💜 Receive Alerts for SSA Reporting Deadlines – Prevent overpayments.

💜 Find Assistance If You Owe Money – Learn about waivers & repayment plans.

💡 With Purple, you can manage SSA overpayments and disability benefits easily!

7. FAQs About SSA Overpayments

Can I Appeal an SSA Overpayment?

✔ Yes! You have 60 days to appeal using Form SSA-561.

Do I Have to Repay an Overpayment If It Was SSA’s Fault?

✔ Not always! You can request a waiver if it wasn’t your fault and you can’t afford to repay.

What If I Can’t Afford to Repay SSA?

✔ Request a waiver or a lower repayment plan (Form SSA-634).

What Happens If I Don’t Pay SSA Back?

⚠️ SSA may reduce your benefits, take your tax refund, or send your debt to collections.

8. Conclusion: You Have Options If SSA Says You Owe Money

✅ SSA overpayments happen when they send more benefits than you were eligible for.