How to Handle Overpayment Notices from Social Security Without Panic
Receiving a notice from the Social Security Administration (SSA) stating that you’ve been overpaid can be alarming—especially if you’re living on a fixed income. Whether you receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), an overpayment notice means the SSA believes you were paid more than you should have received and now must repay the difference.
But before you panic, know this: you have options. And if you live in Arkansas, Oklahoma, Mississippi, Tennessee, Texas, or Louisiana, American Disability Action Group can help you address the situation and protect your benefits.
Why Did I Get an Overpayment Notice?
Overpayments can happen for many reasons, including:
- Returning to work or earning income without reporting it
- Changes in living arrangements or marital status
- Receiving other government benefits
- Administrative errors by the SSA
Even if the mistake wasn’t your fault, the SSA may still attempt to collect the overpaid amount. Overpayments can range from a few hundred to several thousand dollars and often arrive without much warning.
Step 1: Don’t Ignore the Notice
If you receive an overpayment letter, don’t ignore it. Failing to respond can lead to serious consequences, including wage garnishment, tax refund seizures, or a reduction in your monthly Social Security payments. Act quickly to understand your options.
Step 2: Request a Reconsideration
If you believe the overpayment is incorrect—either the amount is wrong or you were not overpaid at all—you can file a Request for Reconsideration (Form SSA-561) within 60 days of the notice date. This asks the SSA to review the decision and can put a temporary hold on collection while they investigate.
For example, in Arkansas and Oklahoma, we’ve helped clients successfully challenge overpayment claims caused by SSA’s own errors in calculating earnings. The key is to gather your income records, benefit notices, and any relevant documentation to prove your case.
Step 3: Ask for a Waiver
Even if the overpayment amount is accurate, you may be able to request a waiver using Form SSA-632. You must show that:
- The overpayment was not your fault, and
- Repaying the money would cause financial hardship.
This option is especially important for low-income individuals in Mississippi, Tennessee, and Texas, where fixed benefit amounts may already be stretched thin due to high living costs and limited access to other support systems.
Step 4: Set Up a Payment Plan
If the SSA denies your reconsideration or waiver request, or if you decide not to challenge the overpayment, you can still negotiate a repayment plan. You don’t have to repay the full amount immediately. Many residents in Louisiana and other Southern states have arranged small, manageable monthly payments that protect their basic needs.
We’re Here to Help
Navigating overpayment issues can be stressful, but you’re not alone. Our Arkansas and Nationwide Social Security Attorneys at the American Disability Action Group specialize in helping people across Arkansas, Oklahoma, Mississippi, Tennessee, Texas, and Louisiana understand and protect their rights when dealing with Social Security.
If you’ve received an overpayment notice, contact us today. We’ll help you respond calmly, confidently, and with a plan that works for you.
