What to do if you receive a letter about Social Security overpayments? Will you have to repay?
If you've received a letter from the Social Security Administration (SSA) saying you were overpaid, you're likely wondering whether you'll need to return that money - and how it will affect your benefits. Under a new rule that went into effect on March 27, 2025, the SSA has changed how it recovers overpayments, and it could leave some beneficiaries without payments until their debt is repaid.Previously, the SSA would typically recover overpayments gradually, withholding 10% of a recipient's monthly benefit. That policy, intended to ease the financial burden on those affected, has now been reversed. Beneficiaries who are overpaid after March 27 will now see 100% of their monthly benefit withheld until the overpayment is fully recovered. That means no monthly checks until the debt is cleared - a major change that has sparked concern among many Social Security recipients.The […]
