Apr 23, 2025
Social Security is a massive program: It’s estimated that benefits were paid to an average of almost 68 million people per month in 2024, totalling about $1.5 trillion.
It’s also a complicated program and, naturally, mistakes happen — either by applicants or by the Social Security Administration (SSA). Sometimes, these mistakes result in benefit overpayments.
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The SSA estimates that from fiscal years 2015 through 2022, it made approximately $71.8 billion in improper payments, most of which were overpayments. That being said, improper payments accounted for only 0.84% of the almost $8.6 trillion in benefits SSA paid out over that period.
A December 2023 poll conducted by Redfield & Wilton Strategies for Newsweek found that one in four Social Security recipients had been accidentally overpaid, many of whom have been asked to repay it.
The SSA demands money back from about 2 million people a year, according to documents that KFF Health News and Cox Media Group obtained through a Freedom of Information Act request.
For some, these repayments have created severe financial hardship.
In one case reported by Newsweek In 2023, a Texas woman had been collecting Social Security Disability Insurance (SSDI) on and off for years, with periods of work in between, not knowing she had been overpaid.
“Social Security waited almost two-and-a-half years and said she now owed over $40,000 within 30 days and stopped paying her entirely by the end of 2019,” her mother told the news magazine.
In another case, a Missouri man who owed $67,000 in back pay to the SSA lost his car and ended up homeless.
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“I am so sad losing everything at 68 years old,” he told Newsweek. “Thank God for food stamps.”
New policies aimed to reduce overpayments
On March 7, the SSA announced it would be restoring the default overpayment withholding rate back to 100% of a person’s monthly benefit, rolling back a 2024 policy change to collect only the greater of 10% or $10. The rate change will apply to overpayment notices issued after March 27. However, there’s no statute of limitations on how far back the SSA can go to recover an overpayment.
Other policy changes the agency made last year included extending the maximum repayment plan term to 60 months from 36 months, making it easier to request a waiver if you believe you’re not at fault or don’t have the ability to pay. They also plan to shift the burden of proof so that claimants don’t have to prove they weren’t overpaid.
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How to deal with an overpayment
According to the SSA, overpayments are handled on a case-by-case basis. If the SSA believes you need to repay benefits, they will notify you by mail. If you don’t believe you’ve been overpaid or the amount they’re requesting is incorrect, you can file an appeal within 60 days.
If you think you shouldn’t have to repay, you can submit a Request for Waiver of Overpayment Recovery. If you owe $1.000 or less, you can request that it be waived over the phone, without submitting a written request. If you do nothing, the SSA will withhold a portion of your benefit payments going forward.
However, if you’re no longer receiving benefits, you’ll need to call the SSA to set up a payment plan. If you don’t arrange this (or you default on your payments), they can garnish your tax return, wages or future benefits.
Be proactive to avoid overpayments
Nearly nine out of 10 people aged 65 and older receive benefits. To avoid overpayments, start by going to my Social Security and check your earnings history to ensure it’s correct. Use a benefit calculator to help you calculate how much your benefit should be, so you’ll know if something seems off. Spotting mistakes early could save you years of back pay.
If you receive Social Security, but previously worked in the public sector and have a non-covered pension plan, you must report this to the SSA when you retire.
Similarly, if you’re getting disability payments and then go back to work, be sure you thoroughly understand how much you can earn before you lose your benefits — and report any worker’s compensation you’re receiving.
Supplemental Security Income (SSI) is a complicated program with strict rules and reporting requirements, and it often overpays. Be sure you understand it well before receiving benefits.
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Vawn Himmelsbach is a veteran journalist who covers tech, business, finance and travel. Her work has been featured in publications such as The Globe and Mail, Toronto Star, National Post, CBC News, Yahoo Finance, MSN, CAA Magazine, Travelweek, Explore Magazine and Consumer Reports.
