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SSI Overpayments and Windfall Offsets

This guide presents selected U.S. government consumer education from Social Security Administration. References to “we” or “us” in the source material refer to the issuing agency. Source dates and links appear below.

Overpayments


What Is An Overpayment?

An overpayment is when you receive more money for a month than the amount you should have been paid. The amount of your overpayment is the difference between the amount you received and the amount due.

What Can Cause An Overpayment?

  • Your income is more than you estimated.
  • Your living situation changes.
  • Your marital status changes.
  • You have more resources than the allowable limit.
  • You are no longer disabled and continue to receive benefits.
  • You do not report a change to us (on time or at all) as required.
  • We incorrectly figure your benefits because of incorrect or incomplete information.

What Will We Do If There Is An Overpayment?

We will send you a notice explaining the overpayment and asking for a full refund within 30 days.  If you are currently getting payments and you do not make a full refund, the notice will:

propose to withhold the overpayment at the rate of the lesser of 10 percent or the entire monthly payment; 

state the month the proposed withholding will start;

fully explain your appeal rights and how you can appeal our overpayment decision;

explain how you can ask us to review and waive the overpayment, so you may not have to pay it back.

What Can You Do If You Get An Overpayment Notice?

If you were a minor child receiving Foster Care benefits, and the State was your representative payee at the time you were overpaid, let us know.

If you believe you were not overpaid or the amount of the overpayment is incorrect, you may request a reconsideration.

If you ask for an appeal within 60 days from the date you receive the notice, any payment we are currently making will continue until we make a determination.

NOTE: For information on requesting a reconsideration, see Appeals Process.

If you believe that you may have been overpaid, but feel that it was not your fault and you cannot afford to pay us back, you may ask for:  

  • Ask for a waiver of recovery of the overpayment.
  • Ask for and complete form SSA-632-BK (Request for Waiver of Overpayment Recovery).
NOTE: You may not need to complete the SSA-632-BK if you think you are not at fault and your overpayment is $2,000 or less. Instead, please request a waiver by calling us at 1-800-772-1213. We may be able to process your request quickly over the phone.

If necessary, we will help you. 

You can ask for a waiver at any time.

If we grant you a waiver, you will not have to repay all or part of the overpayment. Generally, for us to grant you a waiver, you must show that:

  • You were not at fault in causing the overpayment; and
  • Paying us back would mean that you cannot afford to pay for housing, food, clothes, or medical expenses. You may have to submit proof of your income, as well as bills to show that all of your income is used for your monthly expenses and that it would be a hardship for you to repay; or
  • You believe paying us back would be unfair for some other reason.

If You Are Not Sure What Caused The Overpayment, You May Ask For A Reconsideration, A Waiver, Or Both.

You may ask to see your file to see the information we used in figuring the overpayment. You may have us explain the reason for the overpayment while you are examining your file.

What If There Was An Overpayment And We Do Not Grant Your Request For A Waiver?

You can request a reconsideration of Social Security’s denial of your request for waiver.  If we continue to deny your waiver request upon reconsideration, you may appeal the determination by requesting a hearing (see Appeals Process).  If the agency ultimately denies your waiver request, it is likely that you will have to pay back the overpayment or have it withheld from your monthly benefits.

You can submit form SSA-634 Request for Change in Repayment Rate to ask us to withhold less than the proposed amount each month, or you can arrange to make monthly payments if you no longer receive Supplemental Security Income (SSI) benefits.

If you no longer receive SSI, we may withhold your overpayment from a Federal Income Tax refund and/or from any future Social Security benefits you may receive. If you become eligible for SSI in the future, we will withhold your overpayment from future SSI payments.

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SSI Spotlight On Windfall Offset

What Is Windfall Offset?

If you are eligible for retroactive Supplemental Security Income (SSI) and Social Security benefits for the same month, we cannot pay you the full amount of both benefits for that month. We call this windfall offset.

How Will Windfall Offset Affect My Benefit Amount?

We will reduce your retroactive Social Security benefits if you are eligible for Social Security and SSI benefits for the same months. We reduce your Social Security benefits by the amount of SSI you would not have received if we had paid you Social Security benefits when they were due.

Most cases with windfall offset can be processed quickly. However, in some complicated situations, calculating the windfall offset may cause a delay in getting your retroactive benefits paid to you.

When Is Windfall Offset Applied?

Windfall offset applies when:

    You are eligible for both Social Security and SSI benefits for the same month; You are eligible for retroactive Social Security benefits; and Your SSI benefits would have been less if we paid you Social Security benefits when they were due.

What Is The Windfall Offset Period?

The windfall offset period begins in the month that you become eligible for both retroactive Social Security and SSI benefits. The offset period ends when we start paying you monthly Social Security benefits.

If I Receive Only SSI Benefits, Does Windfall Offset Apply To Me?

No. Windfall offset applies only when you are eligible to receive both Social Security and SSI retroactive benefits for the same months.

What Types Of Benefits Are Subject To Windfall Offset?

The windfall offset applies only to Social Security benefits and SSI benefits .

    Social Security is a program for individuals who work and pay Social Security taxes and for their dependents. Social Security pays retirement, survivors, and disability benefits.  SSI is a program for individuals who are age 65 or older, blind, or have a qualifying disability and have limited income and resources. Your SSI payment amount is based on the SSI Federal benefit rate.  

THIS INFORMATION IS GENERAL.
FOR MORE INFORMATION, CALL 1–800–772–1213 (TTY 1–800–325–0778),
VISIT OUR WEBSITE (www.ssa.gov) ON THE INTERNET,
OR CONTACT YOUR LOCAL SOCIAL SECURITY OFFICE.


Sources and publication details

The federal agency source text is U.S. government work in the public domain. Fynoptic selected, adapted, and formatted it for this guide. No agency endorsement is implied. Follow the linked sources for current program details and the rules applicable to your circumstances.

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