What Is an Overpayment?

An overpayment occurs when you receive more benefits than you were entitled to—either due to changes in your medical condition, income, employment status, or administrative error. Both the SSA and VA are authorized to recover overpaid funds, sometimes without prior notice.

How Overpayment Can Affect Your Future Claims

Withheld Benefits

If you're already receiving benefits, the SSA or VA may withhold part or all of your future payments until the overpayment is repaid. This can make it difficult to manage financially, especially if you depend on those monthly checks.

Delayed or Reduced Payments on New Claims

If you file a new claim while an overpayment balance exists, any awarded benefits may be delayed or reduced to offset the amount you owe. The agency will often apply a portion—or all—of your back pay toward the overpayment.

Impact on Eligibility (Rare)

While an overpayment usually doesn’t make you ineligible for future benefits, failing to respond to the SSA’s or VA’s collection efforts could complicate or delay future applications, especially if they view it as fraud or non-cooperation.

Can You Dispute an Overpayment?

Yes. You have the right to:



• Request a waiver if repaying the amount would cause financial hardship or if the overpayment wasn’t your fault.
• File a reconsideration if you believe the overpayment was an error or disagree with the amount.
• Appeal the overpayment decision altogether.

It's important to act quickly — both SSA and VA have strict deadlines for these requests.