What to Do if You Receive a Social Security Disability Overpayment Notice
Understanding Overpayment Notices
Getting a letter from the Social Security Administration stating that you owe money can be alarming. An overpayment notice means SSA believes you received more disability benefits than you should have. Overpayments may involve SSDI, SSI or both. They can occur for several reasons:
- Failure to report work or income – If you start working, increase your hours or your spouse’s income changes and you don’t report it promptly, SSA may pay you too much because they still think you are below the earnings limit.
- Changes in living arrangements or marital status – For SSI recipients, moving in with someone, getting married or changing households can affect your payment. Not reporting these changes can result in overpayment.
- Changes in resources – Receiving an inheritance or large settlement may put you over SSI’s asset limit.
- Administrative errors – Sometimes SSA miscalculates your payment or fails to stop benefits even after you reported a change.
What’s in the Notice?
The overpayment letter must state the amount you were overpaid, how the agency plans to recover the money, and your rights to appeal or request a waiver. You typically have 30 days from the date of the letter to respond. If you do nothing, SSA may start deducting the overpaid amount from your future benefits or refer the debt to the Treasury for collection.
Your Options
- Appeal the overpayment (Form SSA‑561) – If you believe SSA is wrong, you can file a reconsideration request. Provide evidence showing that you reported your changes or that SSA miscalculated your benefits. For example, if SSA counted your earnings during a trial work period, you can cite rules stating that income during the nine trial work months should not reduce your benefits.
- Request a waiver (Form SSA‑632) – You can ask SSA to forgive the overpayment if: (a) it was not your fault, and (b) repaying the money would cause financial hardship. Show that you relied on the payments, had no reason to suspect an error, and cannot afford to repay. Provide copies of bills, bank statements and medical expenses to prove hardship. If SSA grants the waiver, you do not have to repay the money.
- Negotiate a payment plan or reduced withholding (Form SSA‑634) – If the overpayment was partly your fault or you can afford to repay but need time, you can request a payment plan. SSA may agree to withhold a small amount (e.g., $30 per month) from your benefits until the debt is repaid.
Gathering Evidence
To support your appeal or waiver request, gather relevant documents:
- Proof of reporting – Copies of letters, fax receipts or phone logs showing you notified SSA of changes in income or living situation.
- Pay stubs and tax returns – To verify actual earnings and show that SSA miscalculated your income.
- Medical records – If you returned to work during a trial work period or attempted part‑time work but stopped due to your impairment, documentation can demonstrate that you remained disabled.
- Financial statements – Bank statements, bills, rent or mortgage statements to show that repaying the overpayment would jeopardize your ability to meet basic needs.
Legal Help Makes a Difference
Appealing an overpayment or obtaining a waiver can be complex. In West Virginia, many recipients rely on modest incomes and cannot afford to repay thousands of dollars. An experienced disability attorney can review your notice, identify errors, gather evidence, file the necessary forms, and represent you at hearings. Legal representation is particularly important if your overpayment involves supplemental security income, which has strict asset and income rules. Your attorney can also negotiate with SSA to reduce the withholding amount so you can continue covering essential expenses.
Conclusion
If you’ve received an overpayment notice, don’t panic. Act quickly and get professional advice. Shawn Taylor PLLC has helped many West Virginians challenge overpayments, win waivers and set up affordable repayment plans. Contact our Charleston office today for a free consultation. We will fight to protect your rights and keep your benefits.