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

How bad is the situation?

So, how does this keep happening? A combination of erroneous self-reporting of information and insufficient controls in automated and manual processes account for the majority of overpayments, the SSA reported.

Yet, the actual tally may be much, much higher than originally reported. In October, the Sun interviewed former government attorney Avram Sacks, who claimed that SSA recipients were overpaid by a whopping $9 billion annually. He would know: he once tried to help the SSA claw back billions of dollars.

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 was quoted as saying, although when told many of the overpaid recipients were lower-income and or living with a disability, she contended that her employees "work assiduously to pay the right person the right amount at the right time."

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What to do if you get an overpayment notice

Stories abound of seniors getting blindsided by the SSA. One situation involved Maryland senior Everlon Moulton, who called the SSA out in April for slashing her monthly retirement benefits by $233 — all because of a decades-old error on her deceased brother’s account.

Moulton’s unfortunate experience is not unusual. The SSA sends overpayment notices to about one million Americans every year — and according to KFF Health News, the agency has admitted in the past that many overpayments were the result of errors by the government rather than the people — often elderly, poor, or disabled.

So, 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 told The U.S. Sun 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 suggested that overpaid recipients can fight an SSA “clawback” by requesting a reconsideration. In this instance, you can seek a direct appeal because you believe the agency is wrong in its assessment claim. For this, you can file form SSA-561.

Should you fear retribution, keep in mind that federal law guarantees your right to pursue one or both paths to overpayment relief. That said, it’s important to follow the right process.

While visions of voicemail hell and hold-time purgatory may be unavoidable, the agency encourages people to contact their office at 1-800-772-1213. Be sure to tell the representative you want to waive the repayment of overpaid benefits or have them reconsidered.

In March, the SSA announced steps to make overpayment issues easier for beneficiaries — including extending repayment plans, removing the burden of proof of fault, and making it easier for people to request a waiver.