This post was originally published in March 2025. The rules have changed twice since — here’s where things stand now.
At Hoffman, Larin & Agnetti, we’ve represented Florida disability clients for more than 40 years. While our firm does not handle Social Security overpayment cases, we hear from disability recipients all the time who have suddenly seen their monthly checks reduced — or stopped entirely — because the Social Security Administration says they were overpaid. It’s frightening, it’s confusing, and most of the people it happens to didn’t do anything wrong.
We’re sharing this information because disability recipients deserve to know what’s happening, what their options are, and where to go for help. The rules around how much SSA can withhold have shifted three times in under two years, and many beneficiaries are still operating on outdated information.
Here’s the current picture as of 2026.
The Current Withholding Rates
For SSDI, retirement, and survivor benefits (Title II): The SSA’s default withholding rate is 50% of your monthly benefit. This applies to overpayment notices issued on or after April 25, 2025.
For Supplemental Security Income (SSI) (Title XVI): The withholding rate remains 10% of your monthly benefit, or $10 — whichever is greater.
Cases involving fraud or similar fault: Different rules apply, and the SSA can pursue full recovery.
How We Got Here
The rule changes have come fast, so it’s worth understanding the timeline:
- March 2024: SSA capped overpayment withholding at 10% across the board after public outcry over beneficiaries — many disabled, many low-income — losing entire monthly checks for old or erroneous overpayments.
- March 27, 2025: SSA reversed course and reinstated 100% withholding for new Title II overpayments.
- April 25, 2025: Less than a month later, SSA cut the rate to 50% for Title II overpayments after pushback from lawmakers and advocacy groups.
If you received an overpayment notice between March 27 and April 24, 2025, the 100% rate may apply unless you act. If you received a notice on or after April 25, 2025, the 50% rate applies.
Why This Matters
Even at 50%, losing half of a monthly disability or retirement check can be devastating — especially for people who depend on those benefits to pay rent, buy groceries, and cover medical costs. And here’s the part most people miss: most overpayments aren’t the beneficiary’s fault. The SSA itself often causes them through processing delays, data errors, or failure to update a file after a reported life change. Sometimes the agency doesn’t catch the mistake for years, then asks for tens of thousands of dollars back.
If you’ve received a notice, you have options — but you need to move quickly.
Your Four Options When You Get an Overpayment Notice
1. Pay the overpayment in full. If the amount is correct and you can afford it, you can repay directly.
2. Request a lower repayment rate. If 50% withholding would cause hardship, you can ask SSA to lower the recovery rate. File Form SSA-634, Request for Change in Overpayment Recovery Rate.
3. Appeal the overpayment. If you don’t believe you were overpaid, or you think the amount is wrong, file Form SSA-561, Request for Reconsideration, or request a non-medical reconsideration online. The SSA will pause collection while your appeal is pending.
4. Request a waiver. If you weren’t at fault and you can’t afford to repay, file Form SSA-632, Request for Waiver of Overpayment Recovery. For overpayments of $1,000 or less, the SSA may process a waiver over the phone.
Important: The 90-Day Window
You generally have 90 days from the date of your overpayment notice to take action. If you don’t appeal, request a waiver, or ask for a lower rate within that window, the SSA will automatically start withholding 50% of your monthly Title II benefit.
For waivers specifically, the SSA has expanded its administrative waiver process — overpayments of $2,000 or less may be eligible for a simpler review if you weren’t at fault.
Where to Send Forms and Get Help
Send completed forms to your local Social Security office. For questions, call the SSA toll-free at 1-800-772-1213 Monday–Friday, 8:00 a.m.–7:00 p.m. TTY users: 1-800-325-0778.
If you need legal help with an overpayment specifically, organizations that may be able to assist include Florida Legal Services, Bay Area Legal Services, Three Rivers Legal Services, and your local Legal Aid Society. Many offer free representation to low-income disability recipients facing benefit reductions.
A Note From Hoffman, Larin & Agnetti
While our firm focuses on getting Florida clients approved for SSDI and SSI benefits — from initial applications through Administrative Law Judge hearings — we know that an overpayment notice can be just as stressful as a denial. If you’re a current client and you’ve received a notice, call us so we can point you in the right direction. If you’re not a client but you’re dealing with an SSDI denial, an appeal, or a hearing, that’s where we can help.
Call us 24/7 at 305-653-5555, text 305-653-1515, or email [email protected] .
Hoffman, Larin & Agnetti — Trusted. For over 40 years.
