Since Donald Trump returned to office, the Social Security Administration (SSA) has been changing how it handles overpayment recovery—and it’s causing a stir.
If you’ve recently received a letter from the SSA saying they paid you more money than they should have, you’re not alone. This new rule can affect how much of your monthly benefit you actually get to keep. Here’s what you need to know in simple terms.
What Is a Social Security Overpayment?
An overpayment happens when the SSA gives you more money than you were supposed to get. This can happen for a few reasons:
- A change in your income that you didn’t report in time
- A mistake in the SSA’s own calculations
- Changes in your living situation or work status
Sometimes, these mistakes are small. But when they add up, the SSA wants the extra money back—even if the mistake wasn’t your fault.
What Changed in 2025?
Before March 27, 2025, the SSA would only take back 10% of your monthly check to recover the money. But starting March 27, the SSA can now take 100% of your benefit each month until the debt is paid off.
That means if you owe $2,000 and your monthly Social Security check is $1,500, they’ll take your entire check next month, and $500 from the month after.
This change only affects new overpayments starting on or after March 27, 2025. If you were already paying back an overpayment before that date, you’re still under the old rule—the 10% limit continues to apply.
What About SSI Recipients?
If you get Supplemental Security Income (SSI), you’re safe from the harsher rule—for now. Overpayment recovery for SSI still follows the 10% rule, and there’s been no change announced for that.
Why Is the SSA Doing This?
Between 2017 and 2022, the SSA overpaid more than $72 billion, often because of delayed updates or errors. That’s a huge amount of money, and the government is under pressure to recover it. So now, they’re getting stricter about taking it back—faster.
How Will You Know If You’re Affected?
If the SSA believes they overpaid you, they’ll send you a letter. These letters started going out at the end of March 2025. Don’t ignore it. You have 30 days plus 5 days (to allow for mail delivery) to respond before the SSA starts deducting money from your checks.
What Can You Do If You Get a Letter?
1. Check the Details
Look closely at the letter. Make sure the SSA’s numbers and facts are correct. Compare them with your own records.
2. Appeal If Needed
If you think there’s a mistake, you can file an appeal. The SSA can make errors, so don’t be afraid to challenge their claim.
3. Pay It Back
If you agree with the letter and can afford to pay, you can return the money using:
- Credit card
- Online payment
- Personal check
4. Set Up a Payment Plan
If you can’t pay it all at once, call 1-800-772-1213 or visit your local SSA office. By law, they must offer you a payment plan based on your financial situation. But it’s important to act before the full deductions begin.