What Is an Overpayment?

An overpayment happens when you receive more benefits than you're entitled to, often due to:

• Not reporting changes in income or work activity
• Failing to notify SSA/VA about changes in living arrangements
• Receiving other government benefits that impact eligibility
• Clerical or administrative errors

Even if the overpayment wasn’t your fault, you're generally required to repay the amount unless you qualify for a waiver.

How Does Overpayment Affect Future Disability Payments?

Once an overpayment is identified, the SSA or VA may:

• Withhold part or all of your monthly benefit until the debt is repaid
• Reduce future payments through automatic deductions
• Deny or delay new applications or benefit increases
• Take additional collection actions if you’re no longer receiving benefits

The repayment amount is often taken directly out of your monthly checks, sometimes leaving you with a reduced income until the full balance is paid off.

Will It Affect Other Government Benefits?

Yes. If you owe money to the SSA, it can intercept federal tax refunds, garnish wages, or withhold other government payments. In extreme cases, continued overpayments or failure to repay may be considered fraud, which carries additional penalties.

Can You Stop Future Benefit Reduction?

If you act quickly, you may be able to avoid or minimize the impact:

• Request a Waiver: If repaying the overpayment would cause financial hardship and it wasn’t your fault, you can ask the SSA or VA to waive it.
• Appeal the Overpayment: If you believe the overpayment notice is incorrect, you can challenge it.
• Set Up a Payment Plan: You may be able to negotiate smaller monthly deductions to keep more of your benefits.

The sooner you respond, the more likely you are to avoid full benefit suspension or aggressive collection actions.