Social Security Debt Forgiveness: A Guide to Repaying Overpayments

Social Security debt can be overwhelming, but there are options for repayment and forgiveness.

You may be eligible for debt forgiveness if you've received an overpayment, which happens when the Social Security Administration mistakenly sends you more money than you're owed. To qualify, you must have received the overpayment within the past 10 years.

If you're struggling to repay an overpayment, don't worry – you're not alone. Many people receive overpayments due to errors in their records or changes in their benefits.

You can request a waiver of the overpayment debt, which may be approved if you can prove that repaying the debt would cause you financial hardship.

If you receive an overpayment notice from the Social Security Administration, don't panic. Overpayments can happen for various reasons, such as changes in income or living situation.

The amount of your overpayment is the difference between the amount you received and the amount due. You can request a reconsideration of the overpayment decision or the amount. The SSA will inform you about the fact and amount of the overpayment, your right to appeal, and the options to repay or receive a waiver.

If you believe the overpayment was not your fault and you can't afford to pay it back, you may ask for a waiver. The SSA will examine your waiver request to determine if you caused the debt and your ability to repay. If they grant you a waiver, you won't have to repay all or part of the overpayment.

You can ask to see your file to see the information the SSA used in figuring the overpayment. You can also request a reconsideration of the SSA's denial of your waiver request. If the SSA continues to deny your waiver request, you may appeal the determination by requesting a hearing.

The SSA has flexible repayment options, including repayment of as low as $10 per month. You can submit form SSA-634 Request for Change in Repayment Rate to ask the SSA to withhold less than the proposed amount each month. If you no longer receive SSI benefits, the SSA may withhold your overpayment from a Federal Income Tax refund and/or from any future Social Security benefits you may receive.

Here are some key facts to keep in mind:

The SSA will propose to withhold the overpayment at the rate of the lesser of 10 percent or the entire monthly payment. They will also state the month the proposed withholding will start and fully explain your appeal rights and how you can appeal their overpayment decision.

If your overpayment letter includes online payment instructions and a Remittance ID, you can repay online at pay.gov. You'll need to follow the instructions and make the payment to clear your debt.

Repaying Social Security debt can be a straightforward process if you have the necessary information. If you're eligible, you can make a payment online.

If your overpayment letter includes online payment instructions and a Remittance ID, you can repay online at pay.gov.

You'll need to have the Remittance ID from your letter to make an online payment.

Repaying online is a convenient option if you're eligible and have the necessary information.

A Texas senior's $65,000 Social Security debt was forgiven after the SSA overpaid her for years.

Winnie Marshall, a Houston grandmother, received a letter saying she owed $65,000, but she was initially told she could receive both her deceased husband's Social Security payments and her retired Teacher's Retirement System payments.

The Social Security Administration often has oversights leading to overpayments or incorrect continued payments for a dead spouse, according to Kevin Thompson, a financial planner and founder and CEO of 9i Capital Group.

Marshall's debt was waived after several months of waiting and appealing, and she also earned a refund due to the SSA garnishing her checks.

To prevent yourself from getting a hefty bill, inform the Social Security Administration when someone passes and have them reconcile any received overpayment.

If you already have debt, you can complete a waiver of overpayment recovery using form SSA-632, agreeing that you were overpaid, but unable to pay it back.

You can also ask for a reconsideration of your case by filing form SSA-561, essentially an appeal to your case.

If you're unable to get the debt canceled, you can arrange for a payment plan via SSA-634, with the repayment amount based on your specific income and needs.

Overpayments can happen for many reasons, like when someone doesn't timely report work or other changes that can affect benefits.

The Social Security Administration works to prevent overpayments and has flexible repayment options, including repayment of as low as $10 per month.

Each person's situation is unique, and the SSA handles overpayments on a case-by-case basis.

People have the right to appeal the overpayment decision or the amount, and they can also ask Social Security to waive collection of the overpayment.

The SSA examines every waiver request to determine if the person caused the debt and their ability to repay.

Getting an overpayment notice may be unsettling or unclear, but the SSA works with people to navigate the process and inform them about their options.