Key Points
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Earlier this year, the Social Security overpayment recovery rate rose to 50%.
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You can request a lower rate if 50% is too much for you.
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You can also request that the Social Security Administration allow you to keep the extra.
Extra Social Security benefits unexpectedly showing up in your bank account might seem like a good thing. But unless you’re very sure you were supposed to get that money, it’s probably best not to spend it. Though rare, unintentional Social Security payments happen — and as soon as they’re realized, the Social Security Administration (SSA) will come to collect.
Earlier this year, President Donald Trump increased the overpayment recovery rate, also known as the clawback rate, from 10% to 50% for new overpayments occurring on or after April 25, 2025. That means the SSA may now withhold up to half your future checks until you’ve repaid it. It’s a tough pill to swallow for many seniors, some of whom may not have even known they were overpaid until they got the notice.
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Fortunately, you don’t just have to settle for minuscule Social Security checks until the government corrects its error. You can ask for a lower repayment rate, or maybe even avoid repayment altogether.
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What happens when the SSA overpays you
Upon realizing it has overpaid you, the SSA should send you a notice in the mail. It’ll explain what happened and give you 90 days to remedy the problem before it touches your Social Security checks. It’s best to act promptly when you get this notice, so you can reach an agreement that works best for you and the SSA.
If you haven’t already spent the extra money, the best thing you can do is repay it in a lump sum. If you’re able to do that, you won’t have to worry about losing any of your future Social Security checks.
When that’s not possible, you have two options. You can either request that the SSA waive repayment of the excess, or you can request a lower repayment rate.
How to ask for a waiver of overpayment recovery
Requesting a waiver of overpayment recovery means you’re asking the SSA not to take any benefits back from you. There are two situations where this could make sense. The first is if you genuinely believe you weren’t overpaid. In this case, you can file a Request for Reconsideration form explaining why you believe you were paid the correct amount. The SSA will review this and make a ruling before deciding whether to withhold anything from your future checks.
If you know you were overpaid due to no fault of your own and repaying the extra money would cause you financial strain, you can fill out the Request for Waiver of Overpayment Recovery form. If the overpayment was $2,000 or less, the SSA encourages you to contact your local field office rather than filling out this form, as you may get an answer more quickly.
If you decide to request a waiver, be prepared to prove that repayment will cause you financial hardship. You’ll have to provide details on any other government benefits you’re receiving, assets you own, and your monthly household income and expenses. The SSA will use this when deciding whether you can afford to repay any of the overpayment. If it decides you can’t, you can keep the extra money. If not, proceed to the next step.
How to ask for a lower overpayment recovery rate
The 50% overpayment recovery rate is the default, but you’re not stuck there. If losing half your checks would be devastating for you financially, you can fill out a Request for Change in Overpayment Recovery Rate form. You’ll still need to provide details about your finances and assets. There’s also a space where you can enter how much you can afford to pay per month toward the overpayment.
The SSA won’t withhold anything from your checks while it considers your request. If it approves it, you’ll lose a smaller amount of each check. But it’ll take longer to pay back all the extra money.
Should you have any questions, it’s best to follow the SSA’s instructions and contact it as soon as you can. If you don’t address this issue before the 90-day period is up, it will default to a 50% overpayment recovery rate.
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