Some people are worried about getting too much money from Social Security by mistake. If this happens, Social Security calls this an overpayment and might take back half of your monthly check until the extra money is paid back.
This rule does not apply to people who get SSI (Supplemental Security Income). For SSI, they usually take back only 10% or less. This rule does apply to people who get money from Retirement, Survivor’s or Disability Insurance (RSDI), like Social Security Disability Insurance (SSDI), Childhood Disability Benefits (CDB) or Disabled Widow’s or Widower’s Benefits. Because of this, some people are scared to start working.
What is an overpayment?
An overpayment happens when Social Security gives you more money than it should have. If this happens, you may have to pay it back. Getting a letter saying you owe money can be scary. But don’t worry – this guide can help you:
- Avoid getting overpaid
- Know what to do if you are overpaid
How to avoid overpayments
If you get disability benefits and start working, talk to a Benefits Specialist right away. They can help you report your earnings to Social Security every month. You can also read a booklet called “Working While Disabled: How We Can Help” or visit the Sherlock Center’s website to watch helpful videos.
Even if you do everything right, overpayments can still happen. Sometimes they happen for reasons other than work.
What to do if you get a letter
If you get a letter saying you were overpaid, stay calm. Read the letter carefully. It will tell you how much you owe and why. Check to see if the amount is right.
If the amount is under $2,000 and you haven’t been overpaid before, you can ask for something called an “Administrative Tolerance Waiver.” This means you might not have to pay the money back. You can call Social Security at 1-800-772-1213 or your local office.
Other options
If you don’t qualify for that waiver, you can:
- Appeal – This means you tell Social Security you think they made a mistake. Use form SSA-561 and send it within 60 days.
- Request a waiver – Use form SSA-632 if the amount is over $2,000. You must show:
- It wasn’t your fault.
- Paying it back would be too hard for you.
- Set up a payment plan – If you can’t pay it all at once, you can ask to pay a little each month.
If you don’t get benefits anymore, you can pay online at www.pay.gov. If you don’t pay, Social Security might take money from your tax refund or future checks.