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Social Security Overpayment Withholding Rate to Increase

An overpayment from Social Security is something which occurs from time. The overall majority of people receive the correct amount from the SSA. In fact, it is reported that fewer than 1% of payees ever receive an overpayment. Still, 1% when it is applied to many millions of people isn’t an insignificant number.

Overpayments happen from time to time due to clerical errors at the SSA and sometimes by incorrect filings. Over 71 million people received a payment from Social Security in 2023. When you are talking about numbers that large there are going to be glitches and accidental overpayments. On the opposite side of the coin, if your payment is short of the promised amount please feel free to reach out to our office and we can assist in this matter.

Overpayment clawbacks have always been in effect. However, the Social Security Administration announced this month that they are increasing that rate to 100% starting later this month. This means they will keep all payments until the overpayment amount has been recouped.

However, there is good news. If it is unclear what caused the overpayment, beneficiaries can request a reconsideration, a waiver, or both. Waivers can be issued to people who can prove that the overpayment was not their fault and that any withholding of funds will prevent them from being able to afford housing, clothing food, etc.

You can contact the Social Security Administration directly or you can give us a call to handle the case for you.

See Also:

Retroactive Social Security Payments are Being Sent