If you received a notice saying Social Security overpaid you, you have more options than just paying it back. A waiver can permanently cancel your SSDI overpayment debt if you were not at fault for the overpayment and repaying it would cause financial hardship. Given the SSA's 2025-2026 policy changes that pushed the default withholding rate to 50% of monthly benefits, knowing how to respond quickly matters a great deal.
This guide covers the current rules, the two-part test SSA uses to approve waivers, the step-by-step filing process, and what to do if your waiver is denied.
What Is an SSDI Overpayment?
An overpayment happens when SSA pays you more than you were entitled to receive. Common causes include:
- You returned to work and earned more than SSA's Substantial Gainful Activity (SGA) limit
- Your income or living situation changed and SSA was not notified promptly
- SSA made a calculation or processing error on its end
- You received benefits during an appeal period and later lost the appeal
Importantly, most overpayments are not the beneficiary's fault. SSA processing delays and administrative errors are frequent causes. This matters because fault is the first test for a waiver.
2025-2026 Overpayment Withholding Policy Changes
The rules around overpayment collection have shifted significantly in recent years. Here is the current timeline:
| Date | Policy |
|---|
| March 2024 | SSA capped withholding at 10% of monthly benefit for all programs |
| March 27, 2025 | SSA reinstated 100% withholding for new Title II overpayments |
| April 25, 2025 | SSA reduced withholding to 50% for Title II after congressional pushback |
| Current (2026) | 50% default withholding for SSDI; 10% for SSI |
For any overpayment notice issued on or after April 25, 2025, SSA will withhold 50% of your monthly SSDI benefit until the debt is repaid, unless you take action. SSI overpayments carry a 10% withholding rate.
You have 90 days from the date on your overpayment notice to request a waiver, appeal, or reduced withholding rate before automatic collection begins.
Your Four Options After Receiving an Overpayment Notice
When SSA sends you an overpayment notice, you have four paths:
- Pay in full if you agree with the amount and can afford it
- Appeal the overpayment using Form SSA-561 if you believe you do not owe the money or the amount is wrong
- Request a lower withholding rate using Form SSA-634 if you agree you owe the amount but 50% withholding creates hardship
- Request a waiver using Form SSA-632 if you were not at fault and repayment would cause financial hardship
This article focuses on option 4, the waiver. If you believe you were not overpaid at all, pursue option 2 first.
The Two-Part Test: What SSA Requires to Grant a Waiver
SSA will only grant a waiver if you meet both parts of a two-part standard. Failing either part means the debt remains.
Part 1: You Were Not at Fault
SSA considers you not at fault if the overpayment happened without any action or omission on your part. Three things will typically cause a fault finding:
- You made a statement you knew to be false
- You failed to report a change you knew was required, such as returning to work or a change in household income
- You accepted payments you knew or reasonably should have known were incorrect
If SSA's own processing error caused the overpayment and you reported all required information on time, you are generally considered not at fault.
SSA's 2024 policy updates added 20 presumptions of "not at fault" under POMS GN 02250.016. These include situations where SSA cannot locate documents to determine what caused the overpayment or where you relied on misinformation from an official source.
Part 2: Recovery Would Cause Hardship or Is Against Equity and Good Conscience
Once SSA determines you were not at fault, it evaluates whether requiring repayment is appropriate under one of two standards:
Financial hardship (defeats the purpose of Title II). SSA uses a budget test. Recovery fails this test if your monthly income does not exceed ordinary and necessary living expenses by more than $250, and your countable resources are at or below:
| Household Size | Resource Limit |
|---|
| 1 person | $6,000 |
| 2 people | $10,000 |
| Each additional member | +$1,200 |
Necessary living expenses include rent, food, clothing, utilities, medical costs, and transportation to work.
Against equity and good conscience. Even if you could technically afford repayment, SSA may still waive the debt if you changed your financial position based on the overpaid amounts, relied on misinformation from SSA or another official source, or SSA cannot determine what caused the overpayment.
Simplified Waiver for Overpayments of $2,000 or Less
If your overpayment is $2,000 or less and you were not at fault, SSA can process your waiver through a simplified administrative review. In many cases, you can initiate this over the phone by calling SSA at 1-800-772-1213 and explaining that the overpayment was not your fault and that repayment would cause hardship. An agent can process a verbal waiver for small amounts without requiring you to complete the full SSA-632 form.
Step-by-Step: How to Request an SSDI Overpayment Waiver
Step 1: Act Within 90 Days
From the date on your overpayment notice, you have 90 days to submit a waiver request, appeal, or lower-withholding request before SSA begins automatic collection. If you request a waiver or appeal within 30 days, collection is paused entirely until SSA decides on your request.
Step 2: Gather Your Documents
Before filling out the form, collect:
- A copy of the overpayment notice SSA sent you
- Your most recent SSA benefit letter
- Monthly income documentation: pay stubs, benefit letters, bank statements
- Monthly expense documentation: rent or mortgage statement, utility bills, medical bills, insurance statements
- Bank account statements showing your current resources
Step 3: Complete Form SSA-632-BK
Download Form SSA-632-BK from ssa.gov/forms/ssa-632.html or pick it up at your local SSA office. The form has four main sections:
- Section 1: Information about the overpayment and why you were not at fault
- Section 2: A detailed monthly household budget showing income versus expenses
- Section 3: A list of your financial resources including savings, property, and other assets
- Section 4: Your signature certifying the information is accurate
Be specific and thorough in Section 1. Explain exactly what happened, why you did not cause the overpayment, and cite any delays or errors on SSA's part.
Step 4: Submit the Form
You can submit Form SSA-632 in three ways:
- In person at your local Social Security office (bring copies of all documents)
- By mail to your local Social Security office
- Online at ssa.gov/manage-benefits/resolve-overpayment for some situations
Call 1-800-772-1213 ahead of time to confirm the best submission method for your case.
Step 5: Track Your Request and Respond Promptly
SSA will review your waiver and may schedule an interview to discuss your financial situation. Respond to any requests for additional information quickly. During review, SSA should pause collection if you filed within 30 days of the notice.
If Your Waiver Is Denied: Next Steps
If SSA denies your waiver, you have the right to appeal the denial. You can also request a lower repayment rate even if the waiver is denied. SSA can reduce the withholding to 10% of your monthly benefit, or as low as $10 per month, if 50% creates genuine hardship. Use Form SSA-634 to request this adjustment.
Timeline for appeals after waiver denial:
- Request reconsideration within 60 days of the denial notice
- Request a hearing before an Administrative Law Judge within 60 days of reconsideration denial
- Further appeals to the Appeals Council and federal court are also available
If you cannot afford an attorney, nonprofit legal aid organizations and disability rights groups often assist with overpayment appeals at no cost.
Common Mistakes to Avoid
Missing the 90-day window. Automatic withholding starts after 90 days whether or not you took action. File something within 30 days to pause collection immediately.
Underreporting expenses. SSA's budget analysis considers all ordinary and necessary expenses. Include medical costs, transportation, child care, and any out-of-pocket costs that are part of your regular monthly budget.
Leaving the fault section vague. The fault explanation in Section 1 of SSA-632 is your strongest argument. Be specific about what happened, who was responsible, and what steps you took to report correctly.
Assuming you cannot get a waiver if you have savings. Resource limits are higher than many people expect, especially for families. Check the limits above before assuming you do not qualify.
Frequently Asked Questions
What is the current SSDI overpayment withholding rate in 2026?
For overpayment notices issued on or after April 25, 2025, SSA withholds 50% of your monthly SSDI benefit until the debt is repaid. SSI overpayments are withheld at 10%. You can request a lower rate by filing Form SSA-634 and showing that 50% causes financial hardship.
Is there a time limit for filing an SSDI overpayment waiver?
No, there is no absolute deadline for submitting a waiver. However, filing within 30 days of the overpayment notice pauses collection during SSA's review. Filing after 90 days means SSA may begin withholding before it decides on your request.
What if I cannot afford to repay the overpayment even at a reduced rate?
A successful waiver permanently eliminates the debt. If the waiver is approved, you owe nothing. If it is denied but hardship is demonstrated, SSA can reduce your withholding rate to as little as $10 per month. You can also ask SSA to spread repayment over a longer period.
Can SSA deny a waiver even if I was not at fault?
Yes. You must satisfy both parts of the two-part test. Being not at fault is necessary but not sufficient. You must also show that repayment would cause financial hardship or that recovery would be against equity and good conscience.
What happens if SSA cannot find records showing why the overpayment occurred?
Under current SSA policy, if the agency cannot locate documents or determine the cause of the overpayment, that is one of the recognized scenarios where recovery is considered against equity and good conscience. You can raise this in your waiver application.
Can I get help completing Form SSA-632?
Yes. Your local SSA office will walk you through the form. Legal aid societies, disability rights organizations, and benefits counselors can also assist. SOAR Works (soarworks.samhsa.gov) is a federal resource that helps connect people to trained benefits counselors at no cost.
Does requesting a waiver affect my future SSDI benefits?
No. Filing a waiver does not affect your ongoing eligibility for SSDI. It is a separate process that only addresses the debt SSA says you owe from prior payments.
If you are unsure what benefits you currently qualify for alongside SSDI, use our free benefits screener at benefitsusa.org/screener to check eligibility for SNAP, Medicaid, LIHEAP, and other programs in minutes.
