Americans who have received an overpayment letter might want to get their ducks in line as soon as possible. The Social Security Administration has introduced a new rule that will affect individuals who have received a notice. Here’s everything you need to know about the new guidelines regarding the overpayments.
People who have received an overpayment letter from the government will have to rectify the overpayment as soon as possible. The Social Security Administration makes payments to around 69 million people every month in accordance with the benefits they are eligible for.
Sometimes the SSA pays an individual miscalculated and pays an individual more than what they are eligible for, which ends up as an overpayment. This can happen if the person fails to update information about their income. Information that has not been updated can end up being a result of miscalculated benefits on the SSA’s part.
Until now, the SSA had a provision in place that would withhold 10% of your benefits, which would go into repaying the owed amount. A new rule that the agency will follow, effective immediately, will hold back 100% of your benefits.
This will mean that you won’t be receiving any monthly checks until the overpayment is settled. The rule will apply to anybody who has received an overpayment after March 27.
Sometimes, @SocialSecurity overpays people in error. When the agency realizes its mistake—often months or years later—a notice is sent demanding repayment. This can be confusing and frightening for Americans who didn’t know they received extra benefits. (1/3)
— Rep. Katie Porter (@RepKatiePorter) August 27, 2020
The Social Security Administration has reported making more than $72 billion in overpayments from 2015-2022. According to a USA Today report, the SSA had $23 billion in “uncollected overpayments” as of September 2023.
The new rule will apply to everyone but Supplemental Security Income (SSI) beneficiaries. The exception is made to avoid imposing economic hardships on the lower-class income beneficiaries.
If you are someone who has received an overpayment letter and is wondering how to pay your dues back, fear not, the SSA has you covered. The dues will “automatically be placed in full recovery at a rate of 100% of the Social Security payment,” according to a statement the agency released.
The agency has also urged individuals who “cannot afford full recovery” of the overpayments to contact their local office to request a “lower rate of recovery.” The SSA has also shared how the payments will start getting docked 30 days after the overpayment notice has been sent.
Contact SSA: If you are facing financial hardship due to an overpayment, you can contact the SSA at 1-800-772-1213 or visit your local office to request a lower rate of recovery.
SSA’s Legal Obligation: The SSA is legally required to recover overpaid benefits.
— Natorrie Lee (@Natorrie32) March 28, 2025
People also have the option to pay the amount due through a credit card, a check, a money order, or online bill pay. More information and guidelines about the same can be found on the official SSA website.
Individuals who have received letters can also contact their local SSA offices or get in touch with an SSA agent to get clarification about the newly renewed process.
