If you receive Social Security benefits, you depend on getting the full amount to cover bills. If you get more than expected, you can’t count on it as a happy accident, since the agency will demand that you return any extra. The rules changed in 2025. So, can Social Security take your whole check for overpayment? A Greenville, SC Social Security Disability attorney from Smith Jordan Law can explain what you need to know about this situation.
What are overpayments, and how do they happen?
According to the Social Security Administration’s guidance on overpayments for benefits, an overpayment happens when you receive a greater amount of money than you should have. If the SSA recognizes this error, it will send you an overpayment notice explaining what happened. They’ll also include details about how much was overpaid, your options for repayments, and your rights in that situation.
Overpayments can happen for many reasons. They may say you didn’t report a change in income, work hours, living arrangements, or family status. In other instances, mistakes can happen at the SSA if an employee fails to accurately calculate the benefit amount.
The SSA can withhold between 10% and 50% of your check for overpayment
While it’s true that the SSA can keep part of your monthly checks to resolve an overpayment amount, how much depends on the type of benefits you receive. If you get retirement, Social Security Disability, family, or survivor payments, the SSA may withhold as much as 50% of your check. If you receive Supplemental Security Income (SSI), the agency can only retain 10% of your benefits.
Once you receive the overpayment notice, the SSA waits 30 days before they begin withholding money. You can file an appeal or request a waiver, which delays collection until the SSA makes a decision. If they continue with collection, they will retain the same percentage each month until they eliminate the overpayment balance.
How to appeal an overpayment notice from the Social Security Administration
If you believe the overpayment notice is in error, you have 60 days from the day you receive the letter to file your appeal and ask the agency to review your case. If you cannot file your appeal within that period, you will need to present evidence of a valid reason for not responding.
You can file a request for waiver of overpayment recovery online or visit your local Social Security office. Use those methods if you can prove that the overpayment was not your fault and that you can’t afford to pay it, or that repaying it would cause you undue financial hardship. As long as you can demonstrate those 2 circumstances, there isn’t a time limit for filing a waiver.
I heard the SSA can take my whole check for overpayment. Is that true?
For a short time in 2025, the Social Security Administration announced it would withhold 100 percent of some monthly checks for overpayments. That decision was later paused for many recipients.
Right now, most people receiving retirement, SSDI, or survivor benefits face a maximum withholding of up to 50 percent. For SSI, the usual limit is 10 percent. But these rules have changed more than once in the past year. Because of that, it’s important not to assume what will happen in your case.
If you receive an overpayment notice, read it carefully. The letter should explain how much the SSA plans to withhold and when collection will begin.
If you believe the amount is wrong, or you can’t afford the proposed recovery rate, you have options. You may be able to file an appeal, request a waiver, or ask for a lower payment amount.
How the SSA collects overpayment if you’re no longer receiving benefits
As long as you receive benefits from the SSA, they can keep part of your check to fix an overpayment issue. However, what happens if you aren’t getting benefits anymore, such as if you’ve recovered from an injury that kept you from working? The SSA will take other actions to collect the amount due.
You can also pay down your overpayment amount directly if you’re no longer receiving benefits. Do this by paying on the Pay.gov site, through your bank’s online bill payment process, or sending a check for the full amount within 30 days of the date of your notice. You can also arrange a monthly payment plan with the SSA to fulfill the debt, paying either online or at your local office.
If you don’t take care of the overpayment by one of those methods, the SSA can withhold your federal tax refund or garnish your wages. If you pass away before the debt is paid, the SSA may try to collect from certain survivors who receive benefits on your record. This means they could seek payment from your spouse or children.
Get help from a qualified Social Security benefits attorney in Greenville, SC
Accessing benefits that you deserve through the Social Security Administration can be complicated. If you are eligible and ready to seek benefits, you may need assistance understanding the process and successfully completing your application.
At Smith Jordan Law, you’ll meet with a lawyer. We’ll review your notice and explain your options in plain terms. We’re ready to assist you, so contact us online or call (864) 343-2222 today.