How to Make an Offer on a Social Security Overpayment

If you've been awarded Social Security benefits and it has been determined that you received an overpayment, the Social Security Administration takes steps to recover the loss incurred by the system. In most cases, if you receive benefits, the SSA withholds your Social Security benefit check until the overpayment is paid in full. In certain circumstances, the agency may set up a payment plan for you.

Other Repayment Scenarios

If you no longer receive benefits, the agency asks you to return the overpayment. In the event that you don't pay, and there's another person receiving benefits on your earnings record, the SSA may withhold benefits from that individual. If you receive Supplemental Security Income, or SSI, the agency may withhold your SSI check until the overpayment is paid in full. The SSA may also access any tax refund due to you to pay the amount owed.

Installment Payments

If you believe paying back the overpayment will create a hardship for you, the SSA may accept installment payments for your debt. The agency may also offer a compromise payment: This situation occurs if the agency finds that certain circumstances apply that make it reasonable to accept as payment in full an amount that's less than the actual amount owed. To initiate negotiations for installment payments or to discuss a compromise, visit your local Social Security office or call the toll-free number for the agency at 800-772-1213. When you visit or call, be prepared to discuss your financial situation in detail.

Credit Reporting

If you set up payment arrangements with the Social Security Administration and fail to keep up with them, you may see the debt show up as a collection account on your credit report. Even if you pay the debt in full, the collection remains for as long as seven years under regulations established by passage of the nation's Fair Credit Reporting Act.

Disagreeing With an Overpayment

Request a review if you disagree with the Social Security Administration's overpayment decision. The agency considers your review request as an appeal. To get the process started, make a request for an appeal within 60 days from the date you received the notice of overpayment. If you can't meet the deadline, request an extension from the agency. You may use a standard Social Security document --- Form SSA-561 --- to file your appeal.