Social Security is a lifeline for millions of seniors in the United States. But recent changes are making things harder for some people, especially when it comes to overpayments. The Social Security Administration (SSA) has announced new rules that could affect your monthly benefits if they think you owe money back to them.
Let’s break it down so it’s easier to understand.
What’s Happening with Social Security Overpayments?
Between 2015 and 2022, the government accidentally paid out nearly $72 billion too much in Social Security benefits. Now, they want that money back — even if the mistake wasn’t your fault. The SSA is getting tough on collecting these overpayments.
How Much Money Can They Take?
Previously, if the SSA said you owed them money, they could withhold up to 10% of your Social Security check each month. Now, they can take up to 50% to get back what they say they overpaid.
For example, if you get $2,000 a month, they could take $1,000. That’s a big hit for people who rely on these payments to cover rent, food, and other essentials.
Who’s Affected by the New Rules?
The new 50% withholding rule affects people who get old age, survivors, and disability benefits. If you get Supplemental Security Income (SSI), the withholding limit stays at 10%. But even that can hurt if you’re living on a tight budget.
What Can You Do if You’re Notified?
The SSA must send you a notice before they start taking money from your check. You have 90 days to:
- Ask for a lower withholding rate.
- Appeal the decision if you think they made a mistake.
If you miss the 90-day window, the SSA can start taking up to 50% of your benefit until they collect the money they say you owe.
Why Are These Changes Such a Big Deal?
Advocates like Kate Lang from Justice in Aging say these changes are confusing and chaotic. Many people don’t even realize they got an overpayment. And now they might be stuck paying money they don’t have.
In 2022 alone, the SSA took back $4.7 billion from people — many of them on disability benefits who could least afford it. Some people have even lost their homes or had to live in tents after losing their Social Security income.
How Can You Protect Yourself?
If you rely on Social Security for most of your income, these changes can be scary. Here are a few things you can do:
- Try to build an emergency fund, even a small one.
- Consider part-time work if possible.
- Keep good records of all your Social Security payments and notices.
- If you get an overpayment notice, appeal right away.
- Call the SSA or visit your local office to ask questions.
Conclusion
Social Security is meant to help older Americans stay afloat financially, but overpayment issues are making life difficult for many. With the SSA’s new rules, people who already struggle to get by might find themselves in an even tighter spot.
Staying informed, knowing your rights, and taking action quickly if you get a notice are the best ways to protect yourself from financial hardship. Remember, if you’re worried, reach out for help — you’re not alone in this
FAQ’s
Q1: Why is the SSA taking money from my Social Security check?
A1: The SSA is trying to collect overpayments — money they say they mistakenly paid out in the past. They can withhold up to 50% of your monthly benefit to get it back.
Q2: Can I do anything if I get an overpayment notice?
A2: Yes. You have 90 days to ask for a lower withholding rate or appeal the decision. Contact the SSA right away to avoid a big cut in your payments.
Q3: How can I protect myself from future overpayment problems?
A3: Keep good records of your payments, try to build an emergency fund, and consider part-time work if you can. Staying informed helps you be prepared if an overpayment happens.
