The Social Security Administration (SSA) will begin taking back 50% of overpayments starting in July. This change affects some Americans who have been overpaid their benefits due to issues such as not updating income changes or incorrect benefit calculations.
According to the SSA’s Office of the Inspector General, nearly $72 billion was paid out in improper payments, including overpayments, between 2015 and 2022. As of September 2023, there were $23 billion in uncollected overpayments.
The SSA will start issuing notices on April 25, 2025, and begin withholding 50% of benefits after about 90 days, or around July 24. Beneficiaries can repay the overpayment by credit card, online bill pay, or check. However, they may be eligible for a waiver if they believe it was not their fault or cannot afford to repay.
This change comes after concerns were raised in 2023 about the agency’s collection process, which led to some recipients losing their homes due to benefit cuts. The SSA has since lowered its recovery rate from 10% to 50%.
Source: https://eu.usatoday.com/story/money/2025/06/29/social-security-overpayment-changes-july-2025/84372927007