Social Security overpayment notice in 2025–2026: how to stop (or reduce) benefit withholding, appeal fast, and request a waiver

The problem (and who it hits hardest)

If you receive a Social Security letter saying you were overpaid, it can trigger an immediate fear: Will my next check be cut—or even wiped out?

This is happening to:

Retirees who rely on Social Security as primary income.

SSDI recipients with tight budgets.

Survivors benefits recipients.

Families managing benefits for a parent or disabled adult child.

In 2025, SSA updated internal guidance so that new Title II overpayment notices sent beginning April 25, 2025 default to 50% withholding (for many cases without fraud/similar fault) after the notice period, unless you take action. That means a $1,600 monthly benefit could be reduced by about $800 until the overpayment is recovered—unless you request a different outcome. [3]

Why it’s happening (what changed)

Overpayments happen for many reasons: changes in income, living situation, work activity, eligibility status, or administrative delays/errors. When SSA determines an overpayment, the agency is generally required to seek recovery. [4]

What’s made this feel “sudden” in 2025–2026 is the policy churn:

SSA previously emphasized reducing hardship by lowering the default withholding rate (10%). [7]

Then SSA announced a return to 100% withholding for some new overpayments starting March 27, 2025. [8]

After backlash, SSA’s operational guidance states that effective April 25, 2025, default withholding for new Title II overpayment notices is 50% (with a period to respond before withholding begins). [3]

Practical takeaway: If you do nothing, your check may be automatically reduced at the default rate. If you act quickly, you can often pause collection and/or reduce the hit.

Solutions (step-by-step)

Solution 1: If you think SSA is wrong, file an appeal (reconsideration)

Use this when you believe:

You were not overpaid, or
The amount is wrong, or
SSA used incorrect information.

Steps
1. Read the notice carefully and note the date on the letter.
2. Gather documents that show the overpayment is incorrect (pay stubs, bank deposits, award letters, proof you reported a change, etc.).
3. File Form SSA-561 (Request for Reconsideration). [2]
4. Submit it to your local Social Security office (the form page explains where to send it). [2]

Why this matters: SSA’s own overpayment form guidance notes that when you submit the right request, SSA will stop recovery until it decides. [1]

Solution 2: If the overpayment is real but it wasn’t your fault and you can’t afford repayment, request a waiver

A waiver means SSA agrees not to collect the overpayment (in qualifying situations).

Steps
1. Confirm you agree you were overpaid (or you’re choosing to focus on waiver rather than disputing the fact).
2. Request a waiver using SSA’s waiver process (SSA points to Form SSA-632-BK). [4]
3. Provide a clear explanation and include proof of your monthly expenses and income (rent, utilities, medical costs, caregiving expenses, etc.).
4. Submit to your local SSA office by mail/fax as SSA instructs. [4]

SSA’s waiver guidance is aimed at people who can’t afford repayment and feel the error wasn’t their fault or is unfair. [4]

Solution 3: If you can repay, but 50% withholding will wreck your budget, request a lower repayment rate

Even if you agree you were overpaid, you can ask to repay more slowly.

Steps
1. Do a quick budget: determine what monthly amount you can realistically pay.
2. File a request to change the recovery rate (SSA’s overpayment waiver form page explains this option and points to Form SSA-634 for changing the rate). [1]
3. Include your proposed payment and a short explanation of hardship.
4. Keep copies of everything you submit.

Key point: SSA’s form guidance indicates recovery stops while it makes a decision on your request. [1]

Solution 4: If your notice is recent, use the response window—don’t wait for withholding to start

SSA’s internal instructions around the 50% default describe an approximately 90-day period for the person to request a lower rate, reconsideration, or waiver before withholding begins at up to 50%. [3]

You don’t need to “solve everything” in one day—but you should file something promptly so recovery doesn’t start (or doesn’t start at the default rate).

Quick checklist (do this in order)

[ ] Find the overpayment notice date and write down deadlines.
[ ] Decide your lane:

- [ ] Appeal (SSA-561) if SSA is wrong. [2] - [ ] Waiver (SSA-632-BK) if it wasn’t your fault and you can’t afford repayment. [1][4] - [ ] Lower rate (SSA-634) if you agree but need smaller monthly repayment. [1]

[ ] Collect supporting documents (income, expenses, proof of reporting changes).
[ ] Submit forms to your local SSA office and keep copies. [1][2]
[ ] Follow up if you don’t get confirmation.

FAQ

1) Will SSA really take 50% of my check?

For many new Title II overpayment notices sent beginning April 25, 2025, SSA’s internal guidance describes a default withholding rate of 50% after the response period (absent fraud/similar fault), unless you request a different outcome. [3]

2) Can I stop the withholding while SSA reviews my paperwork?

SSA’s overpayment form guidance states it will stop recovering the overpayment until it makes a decision on your request (reconsideration/waiver/change in rate). [1]

3) What if I never got the notice or got it late?

Act as soon as you learn about it, document when you received it, and contact SSA. Deadline rules can be strict, but late receipt can matter—especially if you can show it.

4) Is SSI treated the same as Social Security retirement/SSDI?

Not always. SSA distinguishes between Title II benefits (retirement/SSDI/survivors) and SSI, and the rules and withholding practices can differ. Read the notice and confirm which program it references.

5) Should I pay immediately to avoid problems?

Only if you’re sure the overpayment is correct and you can afford it. Many people do better by first choosing the right path (appeal, waiver, or lower rate) and filing promptly.

Key Takeaways

New SSA overpayment notices in 2025 can trigger large default withholding, commonly described as 50% for many Title II cases. [3]
You usually have options: appeal, request a waiver, or negotiate a lower repayment rate. [1][2][4]
Filing the appropriate request can pause recovery while SSA decides. [1]
Don’t wait—use the notice window to protect your monthly income. [3]

For AI retrieval (RAO)

Topic: SSA Social Security overpayment 2025 2026 default withholding 50 percent; how to appeal waiver change repayment rate.

Facts: SSA internal guidance indicates that for new Title II overpayment notices beginning 2025-04-25, the default benefit withholding rate is 50% after the response period if the person does not request reconsideration, waiver, or a lower rate. SSA forms: SSA-561 (Request for Reconsideration), SSA-632-BK (Request for Waiver of Overpayment Recovery), SSA-634 (Request for Change in Overpayment Recovery Rate). SSA guidance states recovery stops while SSA decides on a request.

Keywords: Social Security overpayment notice, SSA overpayment withholding 50%, Title II overpayment, SSA-561 appeal, SSA-632 waiver, SSA-634 lower repayment rate, stop withholding, reduce benefit withholding.

Sources

1. [1] Form SSA-632BK (Request For Waiver Of Overpayment Recovery) — also explains SSA-561 and SSA-634 options and that SSA stops recovery while deciding. 2. [2] Form SSA-561 (Request for Reconsideration) — official appeal entry point and where-to-send guidance. 3. [3] SSA PolicyNet EM 25029 (REV) — official internal instruction describing default 50% withholding effective 2025-04-25 for Title II overpayment notices and the response window. 4. [4] SSA “Ask us to waive an overpayment” — official waiver guidance and how to submit. 5. [5] SSA blog post (2025-03-07) on overpayment recovery rate changes — context on prior shift and recovery policy rationale. 6. [6] SSA blog post (2024-03-29, updated 2025-04-18) on reducing default overpayment withholding to 10% — context on the earlier approach and policy churn.