Have you gotten an SSI Notice of Overpayment because you had too much money in your bank account?
If Social Security says that you were overpaid benefits and you live in Maine you may want to contact us. There are different reasons why Social Security might think you should have gotten less money. Some examples are changes in your life, like getting married or an improvement in your health, or changes in your finances, like getting a job or inheriting property. These events might mean you are eligible for less money from Social Security. But, Social Security is not always right when they calculate an overpayment. Read more below about your right to dispute an overpayment and what an overpayment means for your benefits. If you have gotten an overpayment notice from Social Security and you live in Maine, you should contact us. If you do not live in Maine, contact your local legal aid organization.
What is an SSI Overpayment?
SSI benefits are benefits from the Social Security Administration (SSA) for people who are not able to work for health reasons and have not paid enough into the Social Security system to earn full Social Security Disability Insurance. SSI has strict financial rules. If your financial situation changes or if Social Security realizes they were calculating your benefits based on wrong information, they will recalculate your benefits. If they find that you were paid too much, they will send you a Notice of Overpayment. There are many reasons why Social Security might think you were overpaid. They might have been calculating your benefits based on a misunderstanding of who lives in your household or they might not have taken into account an asset you own, like a piece of land.
What should I do if I get an overpayment notice?
Read the notice carefully. The Notice of Overpayment will tell you how much you were overpaid and it should tell you why you were overpaid. When you read the notice, think about:
- Why is Social Security saying you were overpaid benefits?
- Is the information they are basing their decision on correct?
- Are the amounts of money they are talking about and dates correct?
If you are not sure why they are saying you were overpaid or think they are wrong, call us.
Important: The Notice of Overpayment will tell you to send the money back in 30 days. You do not need to pay the money back within 30 days. Your options for dealing with the overpayment are explained below.
What can I do to fight the overpayment notice?
If you disagree with the overpayment notice, you have appeal rights. If you do not think you were overpaid, or if you don’t think the amount is right, ask for a reconsideration of the overpayment. Here are the steps you should follow:
- Ask for reconsideration in writing at your local Social Security office or by filling out the request for reconsideration form or by completing the form online. Learn more about asking for reconsideration online.
- The best thing to do is to file your request within 30 days of the date on the Notice of Overpayment. If you do this, you will continue to get your full benefits while SSA makes a decision on your appeal. However, you can ask for reconsideration up to 60 days from the date on the notice. If you ask for reconsideration more than 30 days but less than 60 days from the date on the notice, Social Security will start to collect the overpayment while your appeal is pending. More information about how they will collect it is below. If you ask for reconsideration more than 60 days after the date on your notice, you must tell Social Security why you have “good cause” to ask for reconsideration late. Some examples of “good cause” are that a medical condition prevented you from being able to ask for reconsideration on time or you had a problem with your mail and did not receive the notice until after 60 days.
- In your reconsideration request, you can ask for one of the following types of review:
- Case Review: An SSA worker will review the papers in your file and make a new decision based on this file review. In a case review, you will not meet with a Social Security representative. You can still submit additional information in writing.
- Informal Conference: You meet with the person who will decide your case to go over your file, to give new information, bring witnesses, and to tell your side of the story.
- Formal Conference: A formal conference is like an informal conference except you also have the ability to ask Social Security to force witnesses to appear to provide information through a legal process called a “subpoena.” (This review is only used if your SSI has been stopped or lowered for non-medical reasons).
Once you go through the reconsideration process, Social Security will make a decision. They might say you still owe the same amount of money, you owe less money, or you do not owe an overpayment at all.
If you still disagree with Social Security after their reconsideration decision, you can ask for an Administrative Hearing. Ask for the hearing in writing within 60 days after your reconsideration decision. You can write a letter or fill out the Request for Hearing by Administrative Law Judge form.
The Administrative Hearing is held by an Administrative Law Judge. It is a more formal process than a conference. At the hearing, you will have a chance to tell the judge your side of the story. You can have an attorney, paralegal or other representative to help you at the hearing. You can present witnesses and submit additional documents to support your case. If you live in Maine, contact the Volunteer Lawyer's Project, Pine Tree Legal Assistance, or a private advocate as soon as you appeal. If you do not live in Maine, contact your local legal aid organization.
What if I don’t want to fight it but I can’t afford to pay it back?
If you think Social Security is right or you do not want to fight the overpayment for other reasons, you will be expected to pay Social Security back the money you were overpaid. If you can’t afford to pay it back, you may qualify for a Waiver of Overpayment. A waiver means that even though you were overpaid, SSA will not ask you to give the money back. There are two types of waivers. Read below to learn about how you qualify for a waiver.
Automatic Waivers for Small Overpayments
If you file for a Waiver and:
- The amount is $2000 or less and
- The overpayment was not caused by fraud, like making a false statement or knowingly accepting money you knew you were not entitled to. You waiver should be automatically approved.
If you meet these criteria and the waiver is still denied, and you live in Maine, contact Pine Tree Legal Assistance right away. If you do not live in Maine, contact your local legal aid organization.
If you file a waiver for an overpayment over $2,000, you must show:
- You cannot afford to pay back the waiver and
- The overpayment was not your fault.
When Social Security considers whether you are at fault for the overpayment, they will look at whether you:
- Gave them incorrect information that you knew or should have known was wrong;
- Didn’t give them information that you knew or should have know you needed to give them; or
- Accepted payments you knew or should have known were incorrect.
Social Security laws are very complicated. When deciding whether or not you were at fault for the overpayment, Social Security can consider:
- If you were confused or didn’t know about things like what information you are required to report or whether information was reported to Social Security;
- You tried to comply with Social Security rules but did not; or
- Whether some life situation, like a health condition, prevented you from being able to comply with the Social Security rules. You should tell Social Security if you have trouble reading, remembering or understanding.
How do I file a request for Waiver of Overpayment?
To apply for a Waiver, fill out a form called Overpayment Recovery Request, (you can also ask for one at your local Social Security office). This form asks you questions about whether you reported the change and whether you knew you should report the change. It will also ask questions about your income. Remember, you must show both that the overpayment was not your fault and that you do not have enough money to pay back the overpayment.
The form will include a financial information section. If you are not getting SSI now, list all your income and expenses on the part of the form that asks for financial information. If you are getting SSI, you do not need to give financial information. The rules assume that you cannot afford to repay. Just write on that section: "I am currently receiving SSI. It would be a financial hardship for me to pay the money back."
If you need help filling out the form, ask a worker at SSA to help you.
What if Social Security denies my Waiver?
If SSA does not give you a waiver, you can ask for a reconsideration. This means you want SSA to look at your waiver request again. You should:
- Ask for reconsideration in writing at your local Social Security office or by filling out the request for reconsideration form or by completing the form online. Learn more about asking for reconsideration online.
- The best thing to do is to file your request within 30 days of the date on the Notice of Overpayment. If you do this, you will continue to get your full benefits while SSA makes a decision your appeal. However, you can ask for reconsideration up to 60 days from the date on the notice. If you ask for reconsideration more than 30 days but less than 60 days from the date on the notice, Social Security will start to collect the overpayment while your appeal is pending. More information about how they will collect it is below. If you ask for reconsideration more than 60 days after the date on your notice, you must tell Social Security why you have “good cause” to ask for reconsideration late. Some examples of “good cause” are that a medical condition prevented you from being able to ask for reconsideration on time or you had a problem with your mail and did not receive the notice until after 60 days. In your reconsideration request, you can ask for one of the following types of review:
- Case Review: An SSA worker will review the papers in your file and make a new decision based on this file review. In a case review, you will not meet with a Social Security representative. You can still submit additional information in writing.
- Informal Conference: You meet with the person who will decide your case to go over your file, to give new information, bring witnesses, and to tell your side of the story.
- Formal Conference: A formal conference is like an informal except you also have the ability to ask Social Security to force witnesses appear to provided information through the subpoena process.If a waiver is still denied after Reconsideration, you can ask for an Administrative Hearing. Ask for the hearing in writing within 60 days after your reconsideration was turned down, or by filling out the Request for Hearing by Administrative Law Judge form. This hearing is held by an Administrative Law Judge. At the hearing, you will have a chance to tell the judge your side of the story. You can have an attorney, paralegal or other representative to help you at the hearing. If you live in Maine, contact the Volunteer Lawyer's Project, Pine Tree Legal Assistance, or a private lawyer or paralegal as soon as you appeal. If you do not live in Maine, contact your local legal aid organization.
How will Social Security make me pay back an overpayment?
If a waiver has not been granted, Social Security can make you pay back an overpayment. Some of the steps they can take include:
• Keeping money from your current Social Security check;
• Keeping money you get from other government agencies, like your tax return;
• Garnishing your wages; or
• Reporting the debt on your credit reports.
When will Social Security try to collect the overpayment?
If you do not request a waiver or reconsideration of your overpayment within 30 days your Notice of Overpayment, Social Secuirty will start to withhold up to 10% of your SSI. By submitting a request for a waiver or reconsideration within 30 days, you are pausing the automatic withholding of your SSI. The SSA does not withhold SSI if an initial waiver or reconsideration is pending. If your request for a waiver or reconsideration are unsuccessful, the automatic withholding of your SSI will begin at that time.
Summary
Don't despair if you get a notice of overpayment from Social Security. Read the notice carefully and ask your SSA worker to help you. Always write down the name of anyone you talk to at SSA and the date of the conversation. If you live in Maine, you can also call Pine Tree Legal Assistance if you have questions. If you do not live in Maine, contact your local legal aid organization.
Updated by PTLA: July, 2025