If you’ve ever received an overpayment from Social Security, brace yourself.
Starting Thursday, March 27, the Social Security Administration (SSA) will resume withholding 100% of your monthly benefits until any overpaid funds are fully recovered.
Previously, Social Security limited collections to just 10% of monthly benefits in an effort to reduce hardship. Now, that courtesy is gone. The agency is flipping the switch back to full recovery mode — a throwback to earlier policies under the Obama and first Trump administrations.
Who Does This Affect?
- Anyone who receives an overpayment after March 27, 2025
- Beneficiaries currently in repayment will continue under their current agreement (no change)
- SSI recipients will remain capped at a 10% repayment rate
Overpayments occur when the SSA sends you more money than you were eligible for — sometimes due to delayed income reporting, changes in marital status, or agency miscalculations. According to the SSA’s own Inspector General, nearly $72 billion in improper payments were made between 2015 and 2022.
As of late 2023, over $23 billion in overpayments remained uncollected.
If SSA determines you were overpaid:
- You’ll receive a notice explaining the amount owed
- Recovery begins after 30 days (plus 5 mail days)
- 100% of your monthly Social Security benefit will be withheld until the debt is cleared
If that’s financially impossible, call SSA at 1-800-772-1213 or visit your local office to request a lower repayment rate.
Other Ways SSA Can Collect
- Wage garnishment (if you’re still working)
- Withholding future federal tax refunds
- Reporting delinquencies to credit bureaus
You can appeal the social security overpayment or request a waiver if it wasn’t your fault and you can’t afford to repay. Don’t sit on it — time matters here.
It’s part of a wider federal cost-cutting plan under the Trump administration and the Department of Government Efficiency, led by Elon Musk. SSA also plans to slash its workforce by 12%, close offices, and process claims more slowly. The agency expects this rule reversal to help recover nearly $7 billion over 10 years.
How to Avoid Overpayment in the First Place
- Keep your monthly income, marital status, and job status updated with SSA
- Double-check any unexpected increases in benefits
- Set up a my Social Security account and monitor changes regularly
If you’re getting Social Security and think you might have been overpaid, now’s the time to get proactive. You can request adjustments, but the clock starts ticking fast.
Stay informed, act quickly, and don’t get blindsided by a benefits freeze.
