Steps to Calculate Overpaid Disability Benefits

Review the Overpayment Notice

The Social Security Administration (SSA) or Department of Veterans Affairs (VA) will usually send a written notice outlining:

• The total amount overpaid
• The months or time period it covers
• The reason for the overpayment
• Any deductions or repayments already applied

Start by carefully reviewing this notice. It often includes a breakdown or summary of how the overpayment was calculated.

Compare Actual Payments vs. Eligible Payments

You can calculate the overpayment by subtracting what you should have received from what you actually received.

Formula:
Overpayment = Total Benefits Received – Total Benefits You Were Eligible to Receive

For each month in question:

• Find the amount you were paid
• Determine what the correct benefit amount should have been (based on your income, work status, living situation, etc.)
• Subtract the correct amount from the amount received

Include Income or Work Earnings

If you earned income during the overpayment period and didn’t report it in time, SSA may adjust your benefit based on Substantial Gainful Activity (SGA) limits or earned income exclusions (for SSI).

You’ll need to:

• Review your pay stubs or tax records
• Compare your income to SSA’s earnings limits during that time
• Apply any relevant exclusions or deductions

Check for Other Adjustments

Sometimes adjustments are made for:

• Hospital stays or institutional care
• Change in living arrangements
• Marital status updates
• Asset thresholds for SSI recipients

All these factors can influence how much you were supposed to receive and contribute to the overpayment calculation.

Why Accurate Calculation Matters

Disputing an overpayment starts with knowing whether the amount claimed is correct. If you believe SSA or VA miscalculated:

• Request a detailed breakdown of the calculation
• File an appeal if the numbers don’t add up
• You may also be eligible to request a waiver if the overpayment wasn’t your fault and repayment would cause hardship