Millions of Social Security recipients will now get major relief. As of April 25, 2025, the Social Security Administration (SSA) capped overpayment clawbacks at 50% of monthly benefits. Before this change, the SSA could withhold 100% of a person’s check.
Why the SSA made this change
The change comes after months of public pressure. Lawmakers, advocacy groups, and affected beneficiaries criticized the old rules as unfair.
Previously, if the SSA decided a person was overpaid—even by agency error—it could take their entire check until the balance was cleared.
SSA Commissioner Martin O’Malley said the agency wants to prioritize “fairness and compassion,” especially for older people and others on fixed incomes.
How the 50% recovery cap works
Now, when someone owes an overpayment, the SSA can only withhold up to 50% of their monthly benefit unless the person agrees to pay more.
For example, if your monthly Social Security check is $1,800, the SSA could only withhold $900 each month. Before the rule change, it could take the entire $1,800.
This new limit applies to all new overpayment decisions made on or after April 25, 2025. Many current repayment plans are also getting adjusted.
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What beneficiaries should do next
If you receive an overpayment notice, act quickly. You have the right to:
- Request a waiver if repaying would cause financial hardship.
- Appeal the overpayment decision if you think it is wrong.
- Negotiate a lower repayment amount based on your finances.
To take action, contact your local SSA office or call the national hotline at 1-800-772-1213.
How to request a waiver or appeal
You can request help by following two simple steps:
- Waiver request: Complete Form SSA-632-BK and submit it to the SSA. While your request is under review, you do not have to repay the overpayment.
- Appeal: Complete Form SSA-561 within 60 days of receiving the notice. Explain why you disagree with the overpayment finding.
Both forms are available at ssa.gov.
Background you should know
Overpayments often happen because of administrative errors, delayed income reporting, or eligibility changes. In 2023, the SSA reported over $13 billion in overpayments.
Before this reform, many older people had their entire income cut off for months. Advocates said the practice caused widespread hardship.
The SSA has said it plans to review more of its overpayment recovery rules later this year.
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