IMPORTANT: New Social Security Administration Rules Regarding Overpayments

This article addresses the changes effective March 27, 2025. The Social Security Administration will withhold 100% of SSDI and Retirement checks if they claim that there was an overpayment made into your account. You can file for an appeal if you think the notice was made in error or  if you think the payment amounts are incorrect.

The Social Security Administration (SSA) announced it will increase the default overpayment withholding rate for Social Security beneficiaries to 100 percent of a person’s monthly benefit. The policy change, which will go into effect on March 27, is a rollback of a change made last year.

According to SSA,  you have four options:

#1: You can pay the overcharge

#2: You can call (or visit your local SS office)  to make payment plans.

If you were wrongly charged, you have two options:

#3: Appeal the overpayment if you don’t agree that you’ve been overpaid, or you believe the amount is incorrect. You can request a non-medical reconsideration online or you can submit a completed SSA-561, Request for Reconsideration, to your local Social Security office.

#4: Request that we waive the overpayment if you believe you are not at fault for causing the overpayment and you cannot afford to repay the money back, or it is unfair for some other reason. You can ask for a waiver by submitting a completed SSA-632, Request for Waiver of Overpayment Recovery, to your local office. If your overpayment is $1,000 or less, we may be able to process your waiver request quickly by telephone. You can contact your local office or call us at 1-800-772-1213, Monday through Friday, between 8:00 a.m. and 7:00 p.m.

We will stop recovering the overpayment until we make a decision on your request.

You do have recourse if you are charged with a ‘clawback’. From the Social Security Administration:

Hoffman, Larin & Agnetti have been representing clients filing for SSDI from initial applications through the ALJ hearing.