Social Security overpayments: appeal, waiver and the 50% withholding

Few letters from Social Security cause as much worry as an overpayment notice. It says you were paid more than you should have been, gives an amount and asks for the money back. Since 2025 the stakes are higher: for most new overpayments, Social Security now withholds half of your monthly benefit if you do not repay or respond in time.

You have more options than the letter's first page suggests. You can appeal if the overpayment is wrong, ask for a waiver if it was not your fault and repaying would be a hardship or unfair, or ask to repay in smaller amounts. This guide explains each one, the deadlines that matter, how Social Security collects, and how to avoid overpayments in the first place. It is based on the Social Security Administration's (SSA's) current overpayment pages, its staff instruction on the 50 percent withholding rate (EM-25029 REV), the waiver rules in federal regulations (20 CFR 404.506 through 404.509) and SSA's Overpayments publication.

What an overpayment is, and why it happens

SSA defines an overpayment simply: you received more money than you should have. It says overpayments happen because of missing or wrong information, which can occur if you do not report changes in your life, like your ability to work, where you live, your marital status or your income. Your overpayment notice explains the specific reason in your case.

SSA mails the notice to you, and to your representative payee if you have one. According to SSA's publication, it explains why you were overpaid, the amount, your repayment options, and your appeal and waiver rights. Read it all the way through, and note the date printed on it. Several of the deadlines below count from that date.

The 30-day window and the 50 percent rule

SSA's current page sets out what happens after the notice:

• SSA waits at least 30 days after sending the notice before it starts collecting.
• If you ask for a waiver or file an appeal within those 30 days, it will not collect until it decides your request.
• If you do not repay within 30 days of the date on the notice, SSA automatically withholds 50 percent of your Social Security benefit, or 10 percent of your SSI payment, each month until the overpayment is repaid.

EM-25029 REV, SSA's instruction to its staff, adds detail. The 50 percent default applies to Social Security (Title II) overpayment notices sent beginning April 25, 2025. If you already had an older overpayment being collected at 10 percent and then get a new one, all of your outstanding overpayments move to the 50 percent default once withholding for the new one begins, unless a lower rate is separately negotiated or there is fraud or similar fault. The instruction also says the 50 percent rate does not change SSI recovery, which stays at 10 percent.

You may see older articles, and even SSA's own Overpayments leaflet dated March 2024, describing a 10 percent default for everyone. For Social Security benefits, that is no longer the rule for new notices.

Your four choices

The sections below explain each path.

Choice 1: Appeal if the overpayment is wrong

SSA says to file an appeal if you think it made a mistake in how much you were overpaid, or that you were not overpaid at all, and only if you disagree with the overpayment itself. The first step is a request for reconsideration.

• The form. Use Form SSA-561, Request for Reconsideration, or file online at secure.ssa.gov/iApplNMD/start.
• In writing, with reasons. SSA's publication says your appeal must be in writing and explain why you think you were not overpaid, or why the amount is incorrect.
• The deadline. You have 60 days from the date you received the notice. SSA assumes you received it 5 days after the date on it, unless you show you did not. You need a good reason for asking later than that.
• Collection pauses. If you appeal within 30 days of the notice, SSA does not collect until it decides.

Gather what supports your side: pay stubs or earnings records, proof of when you reported a change, letters from SSA, bank records of what you actually received. If the overpayment came from work, our page on the Social Security earnings limit explains how SSA counts earnings before full retirement age.

Choice 2: Ask for a waiver if it was not your fault

A waiver means you do not have to repay some or all of the overpayment. SSA's page describes it this way: if you cannot afford the repayment and feel the error was not your fault or is unfair, you can request a waiver. The regulation behind it, 20 CFR 404.506, says there is no recovery when the overpaid person is without fault and recovery would either defeat the purpose of Social Security or be against equity and good conscience. Both parts are required: being without fault, and one of the other two.

Part 1: Were you "without fault"?

Under 20 CFR 404.507, SSA finds a person at fault if the overpayment resulted from:

• An incorrect statement the person knew or should have known was incorrect.
• Failing to give information the person knew or should have known was important.
• For the overpaid person, accepting a payment they knew, or could have been expected to know, was incorrect.

SSA must consider all the circumstances, including your age and intelligence and any physical, mental, educational or language limitations, including limited English. One point surprises people: the regulation says that even if SSA was at fault in making the overpayment, that does not relieve you of repaying if you were not without fault yourself. Records showing that you reported changes on time can help show you were without fault.

Part 2a: Would repaying "defeat the purpose" of benefits?

Under 20 CFR 404.508, this means recovery would deprive you of income you need for ordinary and necessary living expenses. It includes situations where you need substantially all of your current income, including Social Security, to meet those expenses. The regulation lists them as:

• Fixed living expenses, like food, clothing, rent or mortgage, utilities, maintenance, insurance (including Medicare Part B premiums), taxes and installment payments.
• Medical, hospital and similar expenses.
• Support of others you are legally responsible for.
• Other expenses that are reasonably part of your standard of living.

SSA may ask for proof of your income and expenses, so have bills and statements ready.

Part 2b: Would repaying be "against equity and good conscience"?

Under 20 CFR 404.509, this applies if you:

• Changed your position for the worse, or gave up a valuable right, because you relied on a notice that a payment would be made or on the overpayment itself. One example in the regulation is a person who quit a job after being awarded benefits that later turned out to be wrong; or
• Lived in a separate household from the overpaid person at the time and did not receive the overpayment.

Your finances do not matter for this test. It is about fairness, not need.

How to ask

• Online. Sign in to your my Social Security account, fill out Form SSA-632-BK, Request for Waiver of Overpayment Recovery, and upload it.
• By fax or mail. Download the form and send it to your local Social Security office.
• In person. Sign in to schedule an appointment.
• By phone, for smaller amounts. SSA's publication says that if you think you are not at fault and the overpayment is $1,000 or less, you can request a waiver by calling 1-800-772-1213 or your local office, and SSA may be able to process it quickly by phone.

Timing

SSA's publication says there is no time limit for requesting a waiver. The regulation explains why timing still matters: if you ask within 30 days of the notice, SSA takes no recovery action until it makes its first waiver decision; if you ask later, SSA stops any withholding that has started until it decides.

If SSA cannot approve it on paper

Under 20 CFR 404.506, before denying a waiver SSA must offer you a chance to make your case:

• A file review, scheduled at least 5 days before a personal conference, where you and your representative can review your claims file and the rules.
• A personal conference, face-to-face, by telephone or by video, with a decision maker who was not previously involved.
• The right to testify, question witnesses, submit documents and bring an attorney or other representative, though you must attend yourself.

SSA then sends a written decision explaining its findings and your appeal rights. Be aware that if a waiver is denied, recovery begins even if you appeal that decision. If you decline the conference or miss a second one, SSA decides on the written record, and reconsideration is the next step.

Choice 3: Ask for a lower withholding rate

If you agree you were overpaid but cannot live on half your benefit, ask to repay in smaller monthly amounts. SSA says to sign in to your my Social Security account, fill out Form SSA-634, Request for Change in Overpayment Recovery Rate, and upload it. SSA mails you a notice with its decision.

Choice 4: Repay

If the overpayment is correct and you can pay, SSA asks you to repay within 30 days of the letter. Its options:

• Pay.gov. If your letter includes online payment instructions and a Remittance ID, you can pay online. The Remittance ID is on the payment options page at the end of the letter.
• Your bank's online bill pay. Search for "Social Security Administration," or enter it manually: Social Security Administration, PO Box 3430, Philadelphia, PA 19122-0340; phone 1-855-807-8807; account number: your Remittance ID.
• By phone or a payment plan. Call 1-855-807-8807, Monday through Friday, 8 a.m. to 4:30 p.m. local time, excluding holidays, and say you want to repay overpaid benefits (TTY 1-800-325-0778). If you no longer receive benefits and cannot pay the full amount now, call to set up a payment plan or see whether you can settle the overpayment.

How SSA collects if you do nothing

• From your benefits. The 50 percent (Social Security) or 10 percent (SSI) withholding described above. SSA's publication adds that it may recover a Social Security overpayment from SSI payments, or an SSI overpayment from Social Security benefits, if you no longer get the benefit that was overpaid.
• If you no longer receive benefits. SSA says the law allows it to collect in other ways, like withholding your tax refund or certain state payments, or garnishing wages. Its publication also says it reports delinquent debts to credit bureaus.
• After death. If you die before fully repaying, SSA may seek repayment from anyone who receives benefits based on your record.
• Bankruptcy. SSA cannot help you file. If you already filed and listed SSA, the court notifies it, and SSA generally stops collecting the overpayment until the petition is resolved.

How to avoid an overpayment

SSA's advice is to always tell it when your situation changes, because overpayments generally happen when it does not have the right information. The changes to report differ for retirement, disability, family, survivor and SSI benefits. Common ones SSA names include changes in your ability to work, where you live, your marital status and your income.

• Report changes promptly, and keep proof: a confirmation number, a dated copy of a letter, or the name of the person you spoke with and the date.
• If you work while collecting before full retirement age, keep track of your earnings against the annual limit.
• If you get SSI, remember it has its own reporting rules; our guide to SSI for people 65 and older covers them.
• If a payment looks larger than you expected, ask SSA why before spending it.
• Open every letter from SSA, and check your my Social Security account regularly.

Reaching SSA

The national number is 1-800-772-1213 (TTY 1-800-325-0778), with automated services 24 hours a day and free interpreters on request. SSA's publication suggests calling early in the day, between 8 and 10 a.m. local time, or later in the day, and notes it is less busy later in the week, Wednesday through Friday, and later in the month. For repayment questions, use the 1-855-807-8807 number above.

A short checklist

• Note the date on the notice. Count 30 days for collection to start and 60 days (plus 5 for mail) to appeal.
• Read why SSA says you were overpaid and check the math against your own records.
• Wrong amount or no overpayment: file Form SSA-561 to request reconsideration.
• Not your fault and repaying is a hardship or unfair: file Form SSA-632-BK for a waiver; $1,000 or less may be handled by phone.
• Correct but unaffordable: file Form SSA-634 to lower the withholding rate.
• Appeal or ask for a waiver within 30 days to keep withholding from starting while SSA decides.
• Keep copies of everything you send and every letter you get.
• Going forward, report changes promptly and keep proof that you did.

An overpayment notice is not the final word. It starts a process with clear rights and deadlines, and knowing them lets you respond on time and with records in hand.