What Changed in Social Security Overpayment Rules

In June 2024, the Social Security Administration stopped using an old rule called "Overpayment Waiver Authority" to forgive overpayments automatically. Under the old rule, if Social Security overpaid you and you were not at fault, the agency could erase the debt without you having to ask. Now, you must request a waiver yourself — Social Security will not offer one on its own.

This change affects people who received more money than they were supposed to because of a Social Security error, not because you reported information wrong. If you were overpaid and have not yet paid it back, you now have to take action to ask for relief instead of waiting for the agency to decide.

The change also made the waiver request process stricter. Social Security now requires you to prove that repaying the overpayment would cause you "financial hardship" — a term the agency defines narrowly. You cannot simply say you cannot afford it; you have to show your income, expenses, and assets to prove you would struggle to pay.

Key Takeaways

  • Social Security no longer automatically forgives overpayments you were not at fault for; you must request a waiver in writing.
  • To get a waiver, you must prove that repaying the overpayment would cause you financial hardship using your income, expenses, and asset information.
  • If you do not request a waiver, Social Security can withhold future benefits, garnish tax refunds, or refer the debt to a collection agency.
  • You have 60 days from the date on the overpayment notice to request a waiver, though you can request one after that deadline in some cases.
  • If Social Security denies your waiver request, you can appeal the decision or ask for a payment plan instead of full repayment.

How to Request an Overpayment Waiver

To request a waiver, you must file Form SSA-632, titled "Request for Waiver of Overpayment." You can get this form from your local Social Security office, by calling 1-800-772-1213, or by downloading it from ssa.gov. You do not need a lawyer to file it, though you can bring one to a hearing if your request is denied.

When you fill out the form, you will need to explain why you were not at fault for the overpayment. "Not at fault" means Social Security made the error, not you. Examples include the agency paying you after you reported a change in your work income, or continuing to pay you after you told them you were no longer a dependent. If you knowingly hid information or did not report a change you were supposed to report, Social Security will likely say you were at fault and deny the waiver.

You will also need to provide financial documents: recent pay stubs or proof of income, a list of monthly expenses, and a statement of your assets (bank accounts, property, vehicles). Social Security uses these to decide whether repaying would cause hardship. If your monthly expenses are close to or higher than your income, and you have little in savings, you have a stronger case.

What Counts as Financial Hardship

Social Security defines financial hardship as a situation where you cannot meet your ordinary and necessary living expenses if you repay the overpayment. "Ordinary and necessary" means rent or mortgage, utilities, food, medical care, and transportation — not entertainment, dining out, or luxury goods.

The agency looks at your total monthly income (including benefits, wages, pensions, and any other money coming in) and subtracts your documented monthly expenses. If the result is zero or negative, you likely meet the hardship standard. If you have money left over each month, Social Security may say you can afford a payment plan instead of a full waiver.

Social Security also considers your age, health, and whether you are working. If you are over 65, disabled, or unable to work, the agency is more likely to find hardship. If you are working and earning a steady income, the agency may expect you to repay over time rather than waive the debt entirely.

What Happens If You Do Not Request a Waiver

If you ignore an overpayment notice, Social Security will collect the debt. The agency can withhold your future Social Security checks — sometimes taking 10 percent of your monthly benefit until the overpayment is repaid. If you receive other federal benefits like SSI (Supplemental Security Income), the agency can withhold from those too.

Social Security can also intercept your federal tax refund and apply it to the overpayment. If the debt is large and you do not pay or request a waiver, the agency can refer the case to the U.S. Department of the Treasury, which may pursue collection through wage garnishment or other means.

The overpayment will remain on your record and can affect future benefit decisions. If you later become disabled or retire, Social Security may reduce your new benefits to account for the unpaid overpayment.

Timeline for Requesting a Waiver

You have 60 days from the date on the overpayment notice to request a waiver. The notice will show the date clearly at the top. If you miss this deadline, you can still request a waiver, but Social Security may deny it more easily. You will need to explain why you did not request one within 60 days — for example, if you did not receive the notice or did not understand it.

After you submit your waiver request, Social Security typically takes 30 to 60 days to make a decision. During this time, the agency may still withhold part of your benefits. If you request a payment plan at the same time as your waiver request, Social Security may pause withholding while it reviews your case.

If Social Security denies your waiver request, you have the right to appeal. You can request a reconsideration (the agency reviews the decision again), and if that is denied, you can request a hearing before an administrative law judge. Each step adds time, but you can continue to request a payment plan while you appeal.

Payment Plans as an Alternative to Waiver

If Social Security denies your waiver request, you can ask for a payment plan instead of repaying the full amount at once. Social Security will work with you to set a monthly payment amount based on what you can afford. The agency typically requires a minimum payment of at least $10 per month, though it may be higher depending on the size of the overpayment.

A payment plan does not erase the debt, but it spreads the repayment over time. Social Security will still withhold from your benefits to cover the monthly payment, but you avoid the larger hit of having 10 percent of your check taken automatically. If your circumstances change — for example, if you lose income — you can ask Social Security to lower your payment amount.

To request a payment plan, contact your local Social Security office or call 1-800-772-1213. You can do this at the same time you request a waiver, or after a waiver is denied. Have your overpayment notice handy when you call.

Special Rules for Certain Situations

If you are over 70 years old, Social Security has stricter rules about collecting overpayments. The agency generally will not withhold more than 10 percent of your benefit, and it must consider your age and health when deciding whether to pursue collection at all. If you are in this situation, mention your age when you request a waiver or payment plan.

If the overpayment happened because Social Security made a clear error — for example, the agency continued paying you after you reported you were working and earning over the limit — you have a stronger case for a waiver. Document what you reported and when. If you have a letter or record showing you told Social Security about the change, bring that to your waiver request.

If you are receiving both Social Security retirement or disability benefits and Supplemental Security Income (SSI), the rules are different. SSI overpayments are handled separately, and the waiver process is more limited. Contact your local Social Security office to understand which program the overpayment is from.

Frequently Asked Questions

Can I get a waiver if I did not know I was overpaid?

Yes, if Social Security made the error and you were not at fault, you can request a waiver even if you did not realize you were overpaid. "Not at fault" means you reported information correctly or did what Social Security told you to do. If you simply did not notice the overpayment, that does not disqualify you — what matters is whether you caused it.

What if I already paid back part of the overpayment?

You can still request a waiver for the remaining balance. When you file Form SSA-632, tell Social Security how much you have already repaid and the dates. The agency will consider only the unpaid portion when deciding on hardship.

Do I need a lawyer to request a waiver?

No, you can request a waiver on your own by filling out Form SSA-632 and submitting it with your financial documents. A lawyer is not required, though you can hire one if you want help, especially if your waiver is denied and you decide to appeal.

How long does a waiver decision take?

Social Security typically makes a decision within 30 to 60 days of receiving your complete waiver request. If the agency needs more information from you, it will contact you. The timeline can be longer if you appeal a denial.

What if my income changes after I request a waiver?

Tell Social Security immediately. If your income drops, your case for hardship becomes stronger, and the agency may reconsider a denial. If your income increases, Social Security may use the new information to deny the waiver or to set a higher payment plan amount.