1. Notice of Overpayment (Demand for Repayment)
A Notice of Overpayment informs you that the government paid you more benefits than you were legally eligible to receive. This notice demands immediate repayment of the excess balance.
You have exactly 30 days from the date on the notice to respond before automated collections begin. Acting within this month-long window prevents the agency from reducing your monthly checks.
Under current policy, the default withholding rate for Social Security retirement and disability benefits is set at 50% of your monthly check. Supplemental Security Income (SSI) overpayments remain capped by law at 10%.
If you believe the agency made an accounting error, file Form SSA-561 (Request for Reconsideration) within 60 days. This formal dispute requires the agency to review your records for calculation mistakes.
Federal regulations presume you received the letter five days after the postmark date, granting an effective 65-day appeal deadline. Filing on time pauses all collection actions until the agency issues a formal review decision.
If the overpayment was not your fault and repaying it causes financial hardship, submit Form SSA-632-BK to request a waiver. Unlike an appeal, an overpayment waiver carries no strict expiration deadline.
For balances of $2,000 or less, the agency can often approve an administrative waiver over the phone without extensive documentation. Contact the Social Security Administration immediately to review your options.
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