What Is Considered an Overpayment?

An overpayment happens when you receive more disability benefits than you were eligible for. Common causes include:

• Failing to report income or changes in income
• Returning to work without notifying the SSA or VA
• Receiving other government benefits that affect eligibility
• Changes in marital or living status
• Administrative errors

Even a small overpayment must be repaid unless you qualify for a waiver.

Is There a Limit to How Much Is Too Much?

There’s no official threshold where an overpayment is considered “too much”—but there are a few important guidelines to keep in mind:

• Any amount is subject to recovery by the SSA or VA.
• Larger overpayments (e.g., $2,000 or more) are more likely to trigger a formal repayment plan or investigation.
• Substantial overpayments could raise red flags for fraud, especially if there was a pattern of non-disclosure or misreporting.

If the SSA or VA believes you intentionally misled them, even a relatively small amount could result in penalties or legal action.

What Happens When You Owe a Large Overpayment?

If the amount is high—whether due to a long period of unreported income or another mistake—you have several options:

• Request a Waiver: If you can prove the overpayment wasn’t your fault and that repayment would cause financial hardship, the SSA or VA may forgive the debt.
• Set Up a Payment Plan: You can negotiate monthly payments that fit your budget.
• Appeal the Overpayment: If you disagree with the overpayment determination, you have the right to file an appeal.

Failing to respond may result in benefit garnishment, tax refund interception, or collection actions.

How to Prevent Overpayments

The best way to avoid a large overpayment is by:

• Reporting all income promptly
• Notifying the SSA or VA of changes in work status or living arrangements
• Keeping records of all communications and submitted documents

Being proactive can help you stay compliant and reduce the risk of future issues.