Beginning in late July 2025, tens of millions of Americans will have their Social Security checks reduced each month, not due to decreased benefits, but due to the Social Security Administration (SSA) aggressively pursuing recovery of overpayments made previously in the years. If you or someone you care about is on Social Security, you must know what’s going on, why it’s happening, and how you can avoid it.
Why Social Security payments are being cut
The SSA is currently paying back a massive backlog of overpaid cases where beneficiaries were paid too much money in error. Such overpayments are typically triggered by unreported changes in income, calculation errors, or SSA internal errors.
Between 2015-2022, almost $72 billion was sent inappropriately. Of this, about $23 billion still has to be claimed back. Now, the SSA is coming to recipients’ doorsteps to retrieve that amount, irrespective of whether or not they are liable.
What’s changing in July
So far, when the SSA told you about an overpayment and you owed them back, they’d deduct 10% of your check each month. Starting around July 24, 2025, though, that will rise to 50%. You could lose a half-check to settle the debt.
Here’s a quick comparison
| Policy | Old Rule | New Rule (As of July 2025) |
| ——————- | ——————- | ———————————
| Monthly Withholding | 10% of your benefit | 50% of your benefit
| Beginning Date | Differed | Around July 24, 2025
| Waiver Option | Available | Still available
Human interaction is required.
| Payment Methods | Online, card, check | Still available
The action was taken against criticism of a suggested plan to cut 100%, which critics argued would leave the elderly and disabled with no minimum income.
Who is affected?
The change will mainly impact on those who:
- Was an overpayment from the SSA (even in error)
- Have failed to pay back
- Have received a notice of repayment as of April 25, 2025
Affected are individuals receiving:
There are approximately 2 million individuals who received notices of overpayment last year, according to recent numbers.
If you’re told that you owe money, don’t panic—but don’t hide, either. You have options:
- Payback: Pay online, by card, or by mailing a check.
- Waiver Request: Complete Form SSA-632-BK if you didn’t bring about the overpayment or cannot pay.
- Request for Reconsideration: If disagree with the amount or feel you weren’t overpaid.
Keep in mind—requesting a waiver or appeal won’t automatically prevent the 50% withholding. Take action.
SSA’s response and what to do now
SSA Commissioner Martin O’Malley admitted the system harmed individuals, especially those who didn’t even know they were overpaid. The SSA insists they’re developing better-balanced policies—but meanwhile, many will suffer the sting of smaller checks.
Now, here’s what you have to do:
- Get familiar with your SSA notices or online account
- Check your payment history
- Find a Social Security advocate
- 30-day response upon notice
Even if you’re already contributing, check your payment and repayment schedule now.
This isn’t a one-time cut in Social Security—but it is a wholesale remaking. Get yourself or your family members on track before July rolls around.
