If you recently got a letter from the Social Security Administration (SSA), you’re not alone – and you might owe them money. As of March 27, the SSA has officially reinstated its harsher repayment policy for beneficiaries who were overpaid.
Previously, if the SSA overpaid someone, it would recoup 10% of their monthly benefits to reclaim the debt. Now? That rate has jumped to 100% for any new overpayments occurring after March 27. That means recipients will see their entire benefit check withheld until the debt is paid back.
The new rule affects nearly 69 million Americans receiving Social Security in 2025. Overpayments happen for a variety of reasons: the SSA might miscalculate, or a recipient might forget to update them on a change in income or marital status. Either way, the SSA is required by law to get that money back.
And it’s no small sum. From 2015 to 2022, the SSA paid out nearly $72 billion in improper payments. As of late 2023, $23 billion in overpayments were still uncollected.
For anyone who was already repaying a debt before March 27, the old rules still apply – meaning 10% will continue to be withheld per check. The new policy also doesn’t affect Supplemental Security Income (SSI) overpayments, which will remain capped at a 10% deduction.
But for those hit with new overpayments, full benefit withholding will kick in 30 days after the notice is sent out (plus 5 days for mailing). If you can’t afford that, you can call 1-800-772-1213 or visit your local SSA office to negotiate a lower repayment rate. Appeals and waivers are also possible if you believe the overpayment wasn’t your fault or you can’t afford to repay.
You can repay using a credit card, online bill pay, or check. More details are available on the SSA website.
This policy reversal comes after heavy media criticism in 2023 exposed how SSA overpayment collection sometimes blindsided elderly and disabled Americans, with some losing their homes when their checks suddenly stopped. Former SSA chief Martin O’Malley at the time called it an “urgent issue.”
Now, acting Social Security Administration’s commissioner Lee Dudek says the change is about restoring fiscal discipline. The SSA expects to recover $7 billion in overpayments over the next 10 years with this approach. Dudek says it aligns with policy from previous administrations, including the first Trump and Obama terms.
The change is also linked to the Trump administration’s broader federal cost-cutting initiative. With Elon Musk heading the newly created Department of Government Efficiency (DOGE), the SSA plans to reduce its workforce by 12%, cutting 7,000 employees and closing multiple offices. Experts warn that could mean slower benefit processing and long wait times.
So how do you avoid overpayment in the first place? Keep your information up to date. If your income, marital status, or living arrangements change, notify the SSA right away. And if your check increases unexpectedly, call and ask why.
The bottom line: whether or not you’re at fault, if you were overpaid by Social Security, the bill is coming due – in full. And unless you act quickly to appeal or request an exception, your future benefit checks might just vanish until the balance is zeroed out.
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