What Is a Social Security Overpayment?
Monthly wage reporting is crucial for Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) beneficiaries. When you receive more benefits than entitled to in any given month, Social Security considers this an overpayment and is required by law to recover these funds.
Handling an Overpayment Notice
If you receive an overpayment notice, carefully review the stated amount and reason. Social Security provides three options:
- Repay the overpayment
- Request an appeal within 60 days
- Request a waiver
Without action within 60 days, Social Security may reduce monthly benefits to recover the overpayment. However, they recently announced a significant change: the default withholding rate has decreased from 100% to 10% (or $10, whichever is greater) to reduce financial hardship.
Understanding Appeals and Waivers
An appeal (Form SSA-561-U2) challenges the overpayment decision if you disagree with the amount or believe you weren’t overpaid. Submit appeals within 60 days of receiving the notice.
A waiver (Form SSA-632-BK) requests forgiveness of the overpayment. You can file a waiver any time if the overpayment wasn’t your fault and you cannot afford repayment or believe it’s unfair. For amounts under $1,000, contact Social Security directly to request a waiver.
Flexible Repayment Options
If a waiver isn’t approved, Social Security offers flexible repayment plans, including monthly payments as low as $10. Request a lower repayment rate using Form SSA-634-BK.
Employment Support Through ERI
Employment Resources Inc. helps individuals with disabilities navigate employment while maintaining their benefits. Our experienced team provides guidance on:
- Proper wage reporting
- Understanding work incentives
- Managing benefits during employment
- Career development support
Contact Employment Resources Inc. to learn how we can help you maintain successful employment while properly managing your Social Security benefits. Our customized support services ensure you have the resources needed for a fulfilling career while avoiding benefit complications.
For specific questions about your Social Security benefits or overpayments, contact Social Security directly at 1-800-772-1213 or visit your local Social Security office.
