Social Security waited over 2 years to tell this Texas woman she owed $40,000 — gave her just 30 days to repay, stopped checks completely. Here’s what happened and what US seniors can learn

New policies aim to reduce overpayments

In 2024, the SSA changed its policies on overpayments and moved away from withholding 100% of a recipient’s monthly benefits. Instead, they now collect the greater of 10% or $10. However, in September of that year, the SSA was still withholding 100% of benefits from about 7,000 people — and there’s no statute of limitations on how far back the SSA can go to recover an overpayment.

Other policy changes included extending the maximum repayment plan term to 60 months from 36 months, making it easier to request a waiver if you believe you’re not at fault or don’t have the ability to pay. They also plan to shift the burden of proof so that claimants don’t have to prove they weren’t overpaid.

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How to deal with an overpayment

According to the SSA, overpayments are handled on a case-by-case basis. If the SSA believes you need to repay benefits, they will notify you by mail. If you don’t believe you’ve been overpaid or the amount they’re requesting is incorrect, you can file an appeal within 60 days. If you think you shouldn’t have to repay, you can submit a Request for Waiver of Overpayment Recovery. If you owe $1.000 or less, you can request that it be waived over the phone, without submitting a written request. If you do nothing, the SSA will withhold a portion of your benefit payments going forward.

However, if you’re no longer receiving benefits, you’ll need to call the SSA to set up a payment plan. If you don’t arrange this (or you default on your payments), they can garnish your tax return, wages or future benefits.

Be proactive to avoid overpayments

Nearly nine out of 10 people aged 65 and older receive benefits. To avoid overpayments, start by going to my Social Security and check your earnings history to ensure it’s correct. Use a benefit calculator to help you calculate how much your benefit should be, so you’ll know if something seems off. Spotting mistakes early could save you years of back pay.

If you receive Social Security, but previously worked in the public sector and have a non-covered pension plan, you must report this to the SSA when you retire. Similarly, if you’re getting disability payments and then go back to work, be sure you thoroughly understand how much you can earn before you lose your benefits — and report any worker’s compensation you’re receiving. Supplemental Security Income (SSI) is a complicated program with strict rules and reporting requirements, and it often overpays. Be sure you understand it well before receiving benefits.