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If you get overpaid by Social Security, brace yourself because soon, they could take your entire check to get the money back. The agency is raising its clawback rate from 10% to 100%, which could hit seniors hard since overpayments are often due to Social Security’s own mistakes.
Under the Biden administration, clawbacks were limited to 10% to reduce hardship, but the Trump administration is changing that. Overpayments aren’t common, but they can be a shock to recipients who assume they’re getting the right amount. “People are desperate when they suddenly owe thousands of dollars,” says Nancy Altman from Social Security Works.
A 2024 report found that less than 1% of Social Security payments are “improper,” but overpayments totaled $72 billion between 2015 and 2022. They usually happen because either beneficiaries forget to update their earnings, or Social Security employees make mistakes processing records. Some people even take a gamble, earning more than the $23,400 limit while collecting benefits, hoping they won’t have to pay it back.
Starting March 27, the SSA will take full benefit checks for new overpayment cases. If you were overpaid before then, the 10% rate still applies. Supplemental Security Income (SSI) overpayments will also stay at 10%.
Another big concern? Medicare. Most seniors have their premiums deducted from their Social Security checks, so if their whole check disappears, they might have to find another way to pay—or risk losing coverage.
If this puts you in a tough spot, you can ask for an overpayment waiver with SSA form 632 if it wasn’t your fault and you can’t afford to pay. You can also appeal using SSA form 561 or request a lower repayment. Experts say if you think something’s off, always appeal!
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