Have you just been sent a dreaded Social Security overpayment notice? Don’t panic — this expert shows how you can settle your balance ASAP

Are the numbers even higher?

Both beneficiaries and the government are to blame for the Social Security muddle. A combination of erroneous self-reporting of information and insufficient controls in automated and manual processes account for the majority of overpayments, the government reports.

The Social Security Administration’s (SSA) Office of the Inspector General cites sobering numbers. The government reported in August that it made nearly $72 billion in improper distributions between fiscal years 2015 and 2022, most of which were overpayments.

Yet the actual tally may be much, much higher — a definite possibility given the inability of many federal agencies to count correctly. In October, the Sun reported the contentions of former government attorney Avram Sacks, who claimed that recipients were overpaid by $9 billion annually.

He should know: He once tried to help the SSA claw back billions of dollars. (Sacks today serves as a Social Security analyst in the Chicago area.)

Social Security Acting Commissioner Kilolo Kijakazi told Congress in mid-October that the agency sent overpayment notices to 1.03 million people in fiscal year 2022 and 987,000 people in 2023.

“We are holding ourselves accountable,” she said, though when told many of the overpaid were poor and disabled, she appeared a bit tone-deaf. She contended her employees "work assiduously to pay the right person the right amount at the right time."

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From overpayment to fair treatment

Stories abound of seniors getting blindsided by the SSA. Maryland senior Everlon Moulton called out the SSA in April for slashing her monthly retirement benefits by $233. That comes to $2,800 for one year, enough to buy a four-bedroom cabin spot with an ocean-view balcony on the five-day “90s Cruise.”

This was all because of a decades-old error on her brother’s account. He died in 2006, by the way.

Your overpayment story can follow a much more serene narrative. If you receive an official notice, there’s no need to treat it with the same trepidation as an IRS audit as your pathways to relief are more streamlined and don’t involve an agency appointment.

Allen says that, under a waiver, you can acknowledge that the SSA claim is correct but that you lack the funds to pay the government back. You can start the process via form SSA-632BK.

Allen also suggests that overpaid recipients can fight a clawback by requesting a reconsideration. In this case, you can seek a direct appeal because you believe the agency is wrong in its assessment claim. In this case, you can file form SSA-561.

It’s your right to fight

Should you fear retribution, keep in mind that federal law guarantees your right to pursue one or both paths to overpayment relief. That noted, it’s important to follow the right process. Should you call your representative in Congress, you’ll probably be told to fill out the forms mentioned above.

But in registering your complaint, it’s also possible that the likes of Kijakazi will get an earful. Such was the case when Rep. Mike Carey (R-Ohio) cited how congressional offices were getting inundated with calls due to overpayment problems.

At least the government’s language sounds more conciliatory these days. The SSA encourages people to go for the waiver “if you can't afford it and feel the error wasn't your fault, or if you believe the overpayment is unfair for another reason.”

While visions of voicemail hell and hold-time eternity may be unavoidable, the agency encourages calls Monday through Friday, 8 a.m. to 7 p.m. (for most U.S. time zones), at 1-800-772-1213. Be sure to tell the representative you want to waive the repayment of overpaid benefits or have them reconsidered.

So maybe, just maybe, Uncle Sam is getting the message to cool it — and turning an eye on himself.