Do you have to repay overpaid social security contributions if you receive too much money?

Was your last Social Security check a little more generous recently? The Social Security Administration may not require you to send back the extra money. Thanks to a series of new rules regarding Social Security overpayments, which SSA Commissioner Martin O’Malley that was set in March, you may be able to pocket the extra money. The rules are all set out in a four-step plan is intended to help beneficiaries who are unknowingly being overpaid because they thought their benefits might have increased.

Normally, when a Social Security beneficiary receives more money than he or she should, he or she must pay it all back, either in reduced monthly payments or as a lump sum, even if it is an error by the SSA. These repayments can have a negative impact on people who rely on their monthly Social Security payments to pay for housing and other bills.

We explain what happens with Social Security overpayments and how it can affect you. For more information, here is the Social Security payment schedule and here is information about the maximum amount of Social Security you can get each month.

How does an overpayment from the Social Insurance Bank occur?

There are several reasons why overpayment can occur, according to the Social Security Administration — for example, if you start a new job and don’t report your work on time, or if you continue to receive payments during an appeal process.

The SSA says it handles overpayments on a case-by-case basis, so if you receive a notice, it’s best to contact the agency, especially if you think it’s an error. In the case of an error, you can file an appeal.

How do the new rules change Social Security reimbursements?

On March 20, 2024, Commissioner O’Malley introduced a four-step plan to change the way claimants who received an overpayment of taxes can get refunded.

First, starting March 25, the Social Security Administration will no longer take back 100% of Social Security benefits when a claimant fails to respond to a request for reimbursement. The standard amount to withhold will now be 10%.

Second, claimants no longer have to prove that they were at fault for causing overpayments. Instead, that burden falls on the agency if it believes the beneficiary was at fault for receiving the overpayment.

Third, the repayment period is being extended from 36 months to 60 months. This longer repayment period gives beneficiaries more time to pay, so less money is taken from their monthly checks.

Finally, the agency will make it easier for beneficiaries to apply for forgiveness if they are not at fault or cannot repay the money.

How to apply for a waiver of overpaid social security contributions or file an appeal

If you don’t think you’re responsible for any Social Security overpayments you’ve received, you can file a waiver request or appeal. Here’s how.

Request an exemption:

If you agree that you were overpaid, but you feel that you don’t have to pay it back because the overpayment wasn’t your fault or you can’t afford it, you can file a forgiveness request. There is no time limit to file a forgiveness request as long as you can prove that it wasn’t your fault or that paying the money back would be a problem.

To apply for an exemption, you must submit the following: form SSA-632Once you have completed it, you can send it in or take it to your nearest office of the Social Insurance Bank.

Do not use this form if you believe you are not at fault and your overpayment is $1,000 or less. Instead, request a waiver by calling 1-800-772-1213 or your local Social Security office. Your request may be processed over the phone.

To file an appeal:

If you don’t think you’ve been overpaid, or if the amount on your notice is correct, you can appeal. Here’s how.

Before you file your return, make sure you have your SSA notice and all supporting documents on hand. Once you’re ready, go to safe.ssa.gov/iApplNMD/start and click Starting a professionthen follow the on-screen instructions. Please note that you have 60 days from the date you received the original overpayment notice (five days after the date stated on the notice) to file your appeal.

For more information about Social Security, here’s how to file for benefits. Also, here’s how to create a My Social Security account.