Why Overpayment Happens

Overpayments usually result from:

• Unreported income or returning to work
• Changes in your medical condition or living situation
• Delays in processing updates by SSA or the VA
• Clerical errors

Even if the mistake wasn’t your fault, you’re still responsible for repaying the amount—unless you qualify for a waiver or a reduction.

Ways to Reduce Your Overpayment Debt

• Request a Waiver If the overpayment wasn’t your fault and repaying it would cause financial hardship, you can request a waiver. The SSA or VA may forgive part or all of the debt.
• To apply for a waiver, show:
• You were not at fault for the overpayment
• Paying it back would create a financial burden
• You acted in good faith

• File an Appeal If you disagree with the amount or think you weren’t actually overpaid, you can appeal the overpayment. This may reduce or eliminate the debt if it's found to be incorrect.

• Negotiate a Payment Plan You can request a more manageable repayment schedule. Instead of deducting a large amount from your monthly benefits, you may be able to reduce the impact with smaller monthly payments.

• Submit Updated Financial Information If your income has changed, submit updated information. A lower current income could qualify you for reduced payments or a more favorable waiver decision.

• Avoid Further Overpayments To prevent additional debt, make sure to:
• Report any changes to income, work status, or living arrangements immediately
• Keep records of what you've reported and when
• Monitor your SSA or VA account to spot discrepancies early

What Not to Do

• Don’t ignore the overpayment letter – waiting can lead to full benefit suspension or aggressive collection efforts
• Don’t agree to unaffordable repayment terms – you have the right to negotiate
• Don’t assume you can’t challenge the debt – many overpayments are incorrect or unfair