What’s Going on With Social Security Clawbacks in 2025?

SSA just changed the rules again—here’s what it means for your check

Introduction: Afraid SSA Will Take Your Whole Check? Let’s Clear It Up

If you receive Social Security benefits and heard the government might start taking 100% of your check for overpayments, you’re not alone. In early 2025, SSA announced a sudden policy shift that caused panic for millions. Now, they’re backing off.

That’s left many people asking:

⚠️ “Was SSA really going to take all my money?”

💰 “What’s the new rule now?”

🛑 “Can I avoid a clawback altogether?”

The short answer:

✅ SSA just finalized a new rule limiting clawbacks to 50% of your check—a walk-back from a previous announcement of 100%.

📌 But that 100% policy never actually took effect.

This article covers:

✅ What changed (and what didn’t)

✅ Who it affects

✅ What you can do if you get an overpayment

✅ How Purple helps you track, protect, and stay ahead

1. The Real Story: What Happened with SSA Clawbacks

Let’s set the record straight:

• ✅ For years, SSA limited overpayment clawbacks to 10% of a monthly check (unless you agreed to more)

• ⚠️ In March 2025, the new administration announced they’d be shifting to 100% clawbacks

• ⏸️ That 100% policy never went into effect—but it sparked huge backlash

• ✅ On April 25, 2025, SSA announced a new middle-ground rule:➜ 50% of your check will be withheld automatically to recover overpayments

You’ll also now get a 90-day window to:

• Appeal the overpayment

• Request a waiver

• Ask for a lower repayment rate based on hardship

2. Who’s Affected by the New Rule?

This change impacts:

• People receiving SSDI, retirement, or survivor benefits

• New overpayment notices issued after April 25, 2025

💡 If you’re on SSI, your overpayment clawbacks are still capped at 10%

3. Why This Still Matters

Even at 50%, clawbacks can hit hard.

SSA overpayments aren’t rare—and often not the beneficiary’s fault. They happen when:

• You earn more than allowed and SSA doesn’t adjust fast enough

• Your bank account goes over the $2,000 SSI limit

• You forget to report income or housing changes

• SSA miscalculates eligibility and pays you too much

Then, months (or years) later, they ask for it back.

📬 Many people don’t realize they’ve been overpaid until they get a letter saying:“You owe $3,000. We’re withholding half your check.”

4. What You Can Do If You Get an Overpayment Letter

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

✅ Appeal

If the amount seems wrong or you weren’t actually ineligible

✅ Request a Waiver

If it wasn’t your fault and paying it back would cause hardship

✅ Ask for a Lower Repayment Rate

SSA can approve smaller monthly withholdings if you can’t afford 50%

📅 You have 90 days from the date of the notice to take action

5. How Purple Helps You Avoid This in the First Place

💜 Real-Time Balance Tracking

Know exactly when you’re getting close to the $2,000 limit for SSI

💜 Deposit Tagging

Keep SSA deposits separate from work, gifts, or other income

💜 Smart Alerts

We’ll notify you if your activity might put your benefits at risk

💜 Document Storage

Store SSA notices, appeal forms, and waiver paperwork securely in the app

FAQs About SSA Clawbacks in 2025

⚠️ Did SSA ever actually take 100% of people’s checks?

No—the 100% policy was announced but never implemented. The new default is now 50%.

⚠️ Can I stop them from taking money from my check?

Yes—you can appeal, request a waiver, or ask for a lower payment plan. But you must act within 90 days.

⚠️ What if I’m on SSI?

Your clawback rate is still capped at 10%—that hasn’t changed.

⚠️ Can Purple prevent overpayments?

We don’t talk to SSA directly—but we help you track income, avoid the $2,000 limit, and stay compliant so overpayments are less likely.

Conclusion: 100% Was Never Real—But 50% Still Stings

✅ SSA’s new rule limits clawbacks to 50% of your check

✅ You’ll get a 90-day window to respond

✅ You can still appeal or request a waiver

✅ Purple helps you track and protect your benefits—before problems start

💜 Sign up for Purple and take control of your disability income, avoid overpayments, and protect what’s yours.