If you receive Social Security benefits, you may want to examine your future payments more closely. Soon, some people may receive less than anticipated—and no, it’s not an error. To recoup funds they claim were overpaid in the past, the Social Security Administration (SSA) has begun to withhold a portion of some recipients’ cheques.
Don’t panic just yet. This guide explains what’s happening, when it’s happening, who is affected, and what to do if you’re involved.
What’s happening with Social Security benefits?
The Social Security Administration declared earlier this year that it would begin notifying some recipients of overpayments. These letters inform you that the Social Security Administration overpaid you in benefits, possibly due to a calculation error or your failure to disclose a change in your income.
Following receipt of the notice, recipients had ninety days to take action, such as:
- You may request a waiver if the repayment poses a hardship or if the overpayment was not due to your error.
- Create a payment schedule to pay back the loan more gradually.
However, the SSA would start withholding 50% of your monthly benefits after that 90-day period ended until the overpayment was reimbursed.
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So, when does this begin?
The SSA states that the withholding may begin as early as July 24, 2025. The 90-day response period for the initial round of overpayment notices issued in April expires at that time.
On July 23, some individuals received their payments, which were still in full. However, if you are impacted, your benefits may be cut in half by August 1, which is the next payment date for many people.
Why is this taking place?
Overpayments are not that uncommon, despite their apparent unfairness. They may occur if the SSA calculates your benefits incorrectly.
- You fail to disclose a shift in your income.
- The living situation or marital status has changed.
- You begin to make too much money while receiving disability benefits.
The SSA made nearly $72 billion in improper payments between 2015 and 2022. The majority of those were overpayments. The agency has recovered the majority of that, but as of last autumn, $23 billion was still owed, according to a 2024 report.
Can they take how much?
The SSA has the legal right to withhold up to 50% of your monthly cheque if you received one of those overpayment notices and did nothing. This implies that until the overpayment is reimbursed, you might only receive $700 per month if you typically receive $1,400.
If you and the SSA devise a new plan, the SSA may take less time, so it’s best to respond to the notice ASAP.
What happens if I can’t pay that?
The good news is that you have choices.
You can request that the SSA waive the overpayment if you don’t believe it was your fault or if you are unable to pay it back. You must:
- Complete the waiver form (found on ssa.gov).
- Please explain why you believe you should not be required to repay it.
- Present evidence of financial difficulty, such as income or bills.
To make things easier on your finances, you can also ask for a reduced repayment rate. Just be sure to get in touch before the SSA begins taking money out of your cheque.
Some people are making money, while others are losing it.
Some people are actually receiving more money in their cheques than others, particularly public employees who are impacted by the Social Security Fairness Act.
According to the SSA, as of July 7, it had processed over 3.1 million retroactive payments to individuals such as:
Teachers in public schools
Officers of the law
Firefighters
Postal employees
Because their jobs did not contribute to Social Security, these workers’ benefits were previously reduced. Many are now receiving the money they were due as a result of the new law.
In actuality, the SSA has already made approximately $17 billion in retroactive payments. The average amount paid per person was roughly $6,710.
When will the changes become apparent?
You might begin receiving smaller checks as early as your August 2025 payment if you are subject to the overpayment rule.
Since Social Security pays benefits one month after they are due, if you are one of the public employees receiving higher pay, your payment may also be changed beginning in August.
Don’t worry if you submitted a new claim after the Fairness Act went into effect on January 5, 2025, and you haven’t noticed any changes yet; the SSA claims that it is still processing claims.
What do you need to do now?
This is a brief checklist:
Have you received an overpayment notice?
Don’t disregard it! You have ninety days to reply.
To apply for a repayment plan or waiver, go to ssa.gov.
Do you believe that, as a public employee, you are entitled to retroactive benefits?
Online claim submission is available at ssa.gov/apply.
Are you concerned about your upcoming paycheck?
To see your anticipated benefit amount, check the SSA payment calendar and sign into your account.
Bid farewell to paper cheques
Another brief update: this autumn, the SSA will be entirely electronic. As a result, paper cheques will no longer be sent. Now is the time to get a payment card from the SSA or set up direct deposit if you still receive your Social Security check in the mail.
Therefore, check your mail, sign into your SSA account, and take charge of your benefits right now rather than waiting until your next check is smaller than anticipated.
