What is an Overpayment?

An overpayment happens when SSA determines that you received more money than you were entitled to through either:

• Social Security Disability Insurance (SSDI)
• Supplemental Security Income (SSI)

Common reasons include:

• Unreported income or work activity
• Changes in living arrangements
• Incorrect information on your file
• Delays in processing SSA records

Once SSA identifies the overpayment, they’ll send you an official notice explaining the amount you owe and how they intend to recover it.

What Happens If You Do Nothing?

If you ignore the overpayment notice and take no action, SSA can and will begin steps to recover the money:

Automatic Withholding from Benefits

SSA may begin withholding part—or all—of your monthly benefits until the full overpayment is repaid. For SSI recipients, they often withhold 10% of your monthly payment.

Debt Sent to Treasury

If you're no longer receiving benefits, SSA may send your debt to the U.S. Department of the Treasury, which can:

• Garnish your federal tax refund
• Offset other federal payments
• Garnish wages in some situations

Damage to Your Credit

In some cases, unresolved overpayments may be reported to credit agencies, affecting your credit score and ability to borrow.

Legal Consequences

While rare, if SSA determines you intentionally withheld information or committed fraud, you could face civil or criminal penalties, including fines or prosecution.

What You Should Do Instead

Instead of ignoring the overpayment notice, take one of the following steps immediately:

• Appeal the decision (use Form SSA-561) if you believe the overpayment is incorrect.
• Request a waiver (use Form SSA-632-BK) if the overpayment wasn't your fault and paying it back would cause hardship.
• Set up a repayment plan if you agree with the overpayment but can’t pay it all at once.

You typically have 60 days from the date on the notice to appeal or request a waiver. Acting quickly helps avoid additional consequences.