What Is a Disability Overpayment?

A disability overpayment occurs when the SSA sends more money than you were eligible for under SSDI (Social Security Disability Insurance) or SSI (Supplemental Security Income). Common causes include:

• Returning to work without notifying SSA.
• Changes in income or resources not reported on time.
• Improper earnings reporting.
• Clerical or administrative errors.

SSA will send a notice explaining how much was overpaid and why.

How to Respond to an Overpayment Notice

You generally have 30 days from the date of the notice to respond. You can:

Repay the Full Amount

• SSA will request a lump-sum payment.
• If you can afford it, this resolves the issue quickly.

Set Up a Payment Plan

• If a lump-sum isn’t possible, request a monthly payment plan.
• Contact your local SSA office or call 1-800-772-1213 to set this up.

Request a Waiver

You may not have to pay it back if:

• The overpayment was not your fault, and
• Paying it back would cause financial hardship.

Submit Form SSA-632-BK to request a waiver.

File an Appeal

If you disagree with the overpayment amount or believe there was no overpayment, you can file an appeal using Form SSA-561 within 60 days.

Will My Benefits Stop?

SSA usually does not stop your benefits due to overpayment. However, they may withhold a portion of your monthly check until the overpayment is recovered—often 10% of your monthly SSI benefit, or a different amount if you negotiate a repayment plan.

How to Avoid Future Overpayments

To prevent future issues:

• Report all income or work activity immediately.
• Inform SSA of any changes in living situation, marital status, or financial resources.
• Review SSA letters and statements carefully for errors.