Getting a letter from the Social Security Administration (SSA) that says you’ve been overpaid can feel confusing and even scary. The good news is that an overpayment notice doesn’t mean you did anything wrong, and you have a few ways to respond. The two most common are “Request for Reconsideration” and “Request for Waiver.” Continue reading to get a breakdown of why overpayments happen, what you can do, and what happens if you ignore the notice.
Common Reasons for Overpayment
A Social Security overpayment happens when the SSA pays you more benefits than you’re eligible to receive. This can occur for several reasons (some of which may be completely out of your control.)
Changes in Your Income or Work Status
If you start working or your earnings increase while receiving benefits (especially SSI or SSDI), the SSA may not update your record fast enough. Once they find out, they might decide you were overpaid for that period.
Changes in Living Arrangements
If your living situation changes—such as moving in with a partner, getting married, or receiving help with rent or bills—it can affect your eligibility for certain benefits like SSI. Failing to report these changes promptly can trigger an overpayment.
Receiving Multiple Benefits at Once
Sometimes people receive both SSI and SSDI, or benefits for themselves and their dependents. If the payments overlap incorrectly, SSA may count that as an overpayment.
Administrative or Processing Errors
The SSA processes millions of payments each month, and mistakes happen. Even if you reported everything correctly, a clerical or computer error could result in overpayment.
Medical or Eligibility Updates Not Processed in Time
If the SSA reviews your case and determines that you were no longer eligible for disability or SSI benefits—but payments kept going out during the review period—you could receive an overpayment notice.
What You Can Do: How to Appeal a Social Security Overpayment Notice
If you get an overpayment notice, don’t panic. You have several options, and the SSA gives you time to respond.
Request Reconsideration (Appeal)
If you believe the SSA is wrong about the overpayment, you can appeal by filing a Request for Reconsideration form (SSA-561). This is the first step in the SSA’s official appeals process and you must do this within 60 days of receiving the notice.
When you appeal, include:
- A written explanation of why you disagree
- Any documents that support your case (like pay stubs, correspondence, or SSA letters)
Once your appeal is submitted, SSA will review your case and notify you of their decision. If they still say you owe money, you can appeal again and ask for a hearing with a judge.
Request For a Waiver
A request for a waiver is different. It’s used when you agree that the overpayment happened, but you think you shouldn’t have to pay it back because it wasn’t your fault or it would cause financial hardship. This is not an appeal, but rather a request for forgiveness of the debt.
You can request a waiver using the SSA-632-BK form. There’s no deadline to request a waiver, and if approved, you won’t have to repay the money.
Examples of “no fault” include:
- You didn’t know you had to give SSA information they claimed they needed
- You did report new information to SSA but SSA did not reduce your benefits and you thought you were receiving the right amount
- You did not know that the information you gave SSA was incorrect
- You thought the payments you received were correct
After reviewing your waiver request, SSA can:
- Approve the full waiver (you don’t pay anything)
- Approve a partial waiver (you pay some, but not all)
- Deny the waiver (you can appeal that decision)
Can You Do Both?
Yes! If you’re not sure whether the overpayment is correct and you can’t afford to pay, you can file both:
- Request for Reconsideration: to challenge whether the overpayment is accurate
- Request for Waiver: to ask not to repay if SSA insists it’s valid
Filing both protects you either way!
What Happens If You Ignore the Notice
Ignoring a Social Security overpayment notice can make things worse. If you don’t respond, SSA can take automatic action to collect the money owed.
Here’s what could happen:
- Automatic deductions from your current or future Social Security benefits
- Debt collection through the U.S. Treasury Department
- Tax refund garnishment
- Wage garnishment if you’re employed
- Negative impact on your credit report
Even if you disagree with the notice or can’t afford to pay, it’s better to contact SSA right away. You’ll have more options—and less stress—if you respond promptly.
Relief Recap
Overpayments are fairly common and often caused by simple reporting delays or SSA errors. If you get an Overpayment Notice, take a breath and remember:
- You can appeal if you think it’s wrong
- You can ask for a waiver if it wasn’t your fault or you can’t repay
- You can set up a payment plan to ease the burden
The key is to act quickly and keep all communication in writing, keep copies of everything you submit, and meet the deadlines. If you’re uncertain or if the amount is large, you might consider consulting an attorney or an advocacy group who specializes in Social Security, disability, or federal benefits.
Key SSA Resources
- Visit the official SSA overpayment webpage.
- Read the FAQ page on the SSA website.
- Download the SSA overpayment fact sheet.