How to Handle Social Security Overpayments

Sometimes the Social Security Administration (SSA) sends you a notice called a Notice of Planned Action that says that you were overpaid benefits. You are not required to take any action until SSA sends you a Notice of Overpayment. However we suggest that you treat the Notice of Planned Action as an overpayment notice and follow the steps outlined below.

The SSA notice should explain why SSA believes they paid too much and what action they will take. It might also tell you how much the overpayment is, how you can repay, and explain your right to appeal.

Important: If you appeal within 10 days, you can ask for continued benefits. It is very important to appeal quickly so you can keep your benefits during the appeal process. If you do not appeal within 10 days (plus 5 days for the time it took you to get the notice), they will implement the notice.

Tips:

Keep every notice you get from Social Security.
Keep a copy of everything you send to Social Security.
If you contact Social Security, write down the date and the person you talk with.

Reasons for an overpayment

There are many reasons people are overpaid by the Social Security Administration.

For Supplemental Security Income (SSI) benefits, here are some examples of how you might have been overpaid:

You received too much in wages and/or other income in a month.
You have too much savings in your bank account.
You owned a life insurance policy that can be turned into cash.
Your household changed, or you moved into someone else’s household.
You got married.
You own a vehicle besides the vehicle you use for daily transportation to work, school, appointments, shopping, etc.
You own real estate other than your home (a camp, woodlot, etc.).

For other SSA benefits (retirement, survivors, disability insurance, widow’s benefits), here are some additional examples of how you might have been overpaid:

SSA overpaid you by mistake.
Marriage changed your eligibility for child benefits.
You earned more than your earnings limit for early retirement, SSDI or survivor’s benefits.

What to do when SSA says they overpaid you

Sometimes SSA makes mistakes in the calculation or the facts of an overpayment. If you get a Notice of Overpayment, contact us for help figuring out what your options are. We may be able to help you convince SSA:

that they were wrong
that you were not at fault and cannot afford to pay the money back
to accept less than the full amount you were overpaid
to accept a repayment plan by taking a small amount out of your monthly check.

Whatever you decide to do, act quickly!

If you ignore the overpayment notice, SSA will start taking money out of your future checks. If you want continuing benefits:

And you are on SSI, you have only 10 days from the date on the notice to appeal.
And you get Social Security based on work history, you have only 30 days from the date on the notice to appeal.
SSA usually assumes you get mail within five days of the date on the notice, but we recommend that you appeal immediately. Make a note of when you received the notice and when you appealed.

Contact us. We can help you understand what’s going on and what steps to take. Have your letter(s) from Social Security in hand and contact us right away for help. Fill out our form and we will call you back.

If you get another notice about your overpayment

If your request for reconsideration or your request for waiver is denied, contact us right away. We can help you decide whether you want to appeal the decision further or ask for waiver. We can explain how to do what you decide is best for you. Fill out our form or call us at 1-800-889-2047 and we will call you back.

How SSA may collect an overpayment

SSA can collect from your benefits

If you are still getting benefits, Social Security will stop or lower your monthly benefit until you have paid back the overpayment.

If you get SSI, your benefit can’t be lowered by more than 10% of your income.

If you only get benefits from Social Security that are not SSI, SSA can take your whole monthly payment. But, if you can show hardship, SSA will accept a lower monthly payment. Usually you will have to pay back at least $50 a month. SSA tries to get the overpayment paid back within three years if you get benefits other than SSI.

SSA can take your tax refund or some of your wages

If you are not getting benefits from SSA, they can take your tax refund. They can also “garnish” your wages. Garnish means that money is taken out of your wages to repay SSA.

SSA must give you notice 60 days before it can take steps to get your tax refund or garnish your wages. This gives you time to contact SSA to ask for a repayment plan. SSA can’t garnish your wages if you have a repayment plan and you aren’t behind in payments.

SSA can collect from your family

If you have a Social Security overpayment and your family members get benefits from your account, SSA can collect the overpayment from you or your family.

SSI can be collected from either spouse if the couple was on SSI at the time of the overpayment.

Overpayment and bankruptcy

You can file for bankruptcy and ask the bankruptcy court to discharge your Social Security overpayment. Fill out our form or call us at 1-800-889-2047 if you want information on bankruptcy.

Where are the Vermont SSA offices?

Burlington SSA Office
128 Lakeside Ave., Suite 107
Burlington, VT 05401
1-877-840-5776
Fax: 802-652-0936

Montpelier SSA Office
33 School Street
Montpelier, VT 05602
1-877-505-4542
Fax: 802-229-1521

Rutland SSA Office
246 West Street
Rutland, VT 05701
1-866-690-1944
Fax: 802-773-0830

Hours: Monday through Friday from 9 a.m. - 4 p.m.

Help from members of Congress

If the Social Security Administration seems to be taking a very long time to reach a decision in your case, contact one of your representatives in Congress.

Rep. Becca Balint

159 Bank Street
Suite 204
Burlington, VT 05401
802-652- 2450
Fax: 771-200-5791

1408 Longworth House Office Building
Washington, DC 20515
202-225-4115
Fax: 771-200-5791

Senator Bernie Sanders

1 Church Street, Third Floor
Burlington, VT 05401
802-862-0697
Fax: 802-860-6370
Toll-free: 1-800-339-9834

U.S. Senate
332 Dirksen Building
Washington, D.C. 20510
202-224-5141
Fax: 202-228-0776

Senator Peter Welch

199 Main Street, 4th Floor
Burlington VT 05401
802-863-2525
Fax: 802-651-1674
Toll-free: 1-800-642-3193

SR-124 Russell Senate Office Building
Washington, DC 20510
202-224-4242

If you need help dealing with a Social Security overpayment, contact us. Call us at 1-800-889-2047 or fill out our form and we will call you back. Your information will be sent to Legal Services Vermont, which screens requests for help for both Vermont Legal Aid and Legal Services Vermont.

See our other Social Security pages: