What to Do If SSA Says You Were Overpaid

Getting a letter from the Social Security Administration (SSA) claiming you were overpaid can feel like a gut punch, especially when you are already managing a disability, a tight budget, or ongoing medical expenses.

An SSA overpayment notice means the agency believes it sent you more money than you were entitled to receive, and now it wants that money back.

Whether the overpayment was your fault, a government error, or something in between, you may have options to respond, and knowing how to use them can make all the difference.

At Chermol & Fishman, we help people across multiple states navigate exactly these kinds of stressful SSA situations. In this guide, we break down what an overpayment notice means, how to respond, and when it makes sense to get legal help.

Understanding Your Overpayment Notice

When SSA determines you were overpaid, it sends a formal written notice that spells out:

• The total dollar amount SSA claims you owe
• The time period during which the alleged overpayment occurred
• Your right to appeal the overpayment decision
• Your right to request a waiver of repayment
• How SSA intends to recover the funds (typically by reducing your future monthly payments)

Do not ignore this notice. You generally have 60 days from the date of the letter to take action, whether that means appealing the decision, requesting a waiver, or both.

Step 2: Appeal the Overpayment If You Believe It Is Wrong

If you believe SSA made a mistake — perhaps the overpayment did not happen, the amount is calculated incorrectly, or the error was entirely on SSA’s side — you can challenge it formally.

You must file your appeal within 60 days of receiving the notice. Use SSA Form SSA-561 (“Request for Reconsideration”) to dispute the decision. You can submit the form online at SSA.gov, by mail, or in person at your local Social Security field office.

Once you appeal, a different SSA examiner reviews the case from the beginning. If that second decision also goes against you, there are multiple states of appeal, including

• Reconsideration
• An Administrative Law Judge (ALJ) hearing
• The Appeals Council
• Federal court if needed.

Our overview of the appeals process walks through each stage in plain language.

What Happens If You Miss the Deadline or Do Nothing?

If you receive an overpayment notice and fail to respond within the 60-day window, SSA will typically begin withholding a portion of your monthly disability check until the debt is recovered.

For someone who depends on that income to cover rent, groceries, and medication, this can be financially devastating.

Beyond benefit withholding, SSA has other collection tools at its disposal:

• Intercepting federal tax refunds through the Treasury Offset Program
• Reporting the debt to credit bureaus
• Administrative wage garnishment for people who have returned to work

For SSI recipients, there is a built-in protection: SSA may not withhold more than 10% of your monthly SSI payment for overpayment recovery — unless SSA has determined that fraud or willful misrepresentation was involved. However, SSDI recipients could have up to 50% of their benefit withheld.

This is one situation where working with a disability attorney can be helpful. A lawyer can file for a stay of recovery while your appeal or waiver request is pending, shielding your income while the process plays out.

Common Mistakes to Avoid When Responding to an Overpayment Notice

Even people who know their rights often make costly missteps when dealing with SSA. Here are the most frequent ones — and how to sidestep them:

• Missing the 60-day deadline. Once that window closes, challenging the overpayment becomes significantly harder. This is the single most common and most damaging mistake.
• Assuming the stated amount is accurate. SSA can make calculation errors. Don’t accept the figure in the notice at face value. Request full documentation and review it line by line.
• Never applying for a waiver. Many eligible beneficiaries never file a waiver request because they assume they will be denied or do not understand the process. If you don’t apply, you lose the chance to potentially keep more of your money.
• Handling SSA conversations without a paper trail. Always follow phone calls with written confirmations. SSA call centers are large, and errors happen. Your written record protects you.
• Waiting too long to get legal help. The earlier you involve a disability attorney, the more options remain available.

For a broader look at how to avoid SSA pitfalls, our article on the 5 most common mistakes people make when filing for disability benefits covers related missteps worth knowing about.

Serving Disability Clients Across the Country

Whether you are dealing with an overpayment notice or a denied disability application, the legal team at Chermol & Fishman is ready to help — regardless of where you live. We serve clients in Florida, Texas, New Jersey, and Pennsylvania.