The U.S. Social Security Administration says that between 2015 and 2022, the agency made almost $72 billion in wrong payouts to people who were entitled to them. That’s why, starting in July, people who got wrongly paid will see their benefits cut by 50%. The goal is to get those funds back.
This number seems like a lot, but it’s actually only 1% of all SSA payments. Even so, it will be a big problem for those who are affected. The head of the SSA, Martin O’Malley, has said that this process is risky because it could hurt innocent people if it is not done right. Are you one of those people? Do you want to know if it will have an effect on you? Then read on.
Social Security overpayments
It looks like bad news for taxes is coming in July. There were already a lot of worries in the United States about the gap in retirement pensions before the Social Security Administration dropped this bombshell. It will then go ahead and get back 50% of the payments that taxpayers should not have gotten. What’s going on here?
A study from the SSA Office of Inspector General in August 2024 said that between 2015 and 2022, $72 billion was paid out in the wrong way! Not only that, but the amounts were also more than what was agreed upon. You could say that some people got money that didn’t belong to them and chose to keep it. This is only 1% of all benefits paid by the SSA, but the people who are touched will have to deal with the effects. The agency owed $23 billion in overpayments that had not been collected as of September 2023.
How do I know if I am affected?
Simple as that. When you get a payment that doesn’t belong to you and decide to keep it, you are in trouble. The government started telling those who would be affected on April 25, 2025, and gave them 90 days to tell them that 50% of their income would be taken out.
How will SSA recover the funds?
Especially because of the state of the economy, the Social Security Administration has had to change how it gets money back over the years.
- Before 2023, 10% of income was taken out every month.
- As of March 2024, it was suggested that 100% of the debt be withheld until it was paid off in full.
- As of April 2024, the government had to take back and hold back 50%. People greatly disagreed with the measure, and some even said that people lost their homes because they were overpaid.
The Social Security Administration said that 2 million people would be impacted through fiscal year 2023, according to information made public by KFF and Cox Media Group.
What should I do about my overpayment?
If you still owe money from an excess, the SSA should have let you know, either by mail or in your Personal Area of their website. But here’s what you should do to be sure:
- Check your Personal Area to see if you still owe money for overpayments.
- If so, you can choose to pay the full amount by credit card, electronic payment, or cash.
- Someone can ask for a waiver if they owe money but can’t pay it or think it was their mistake.
You don’t have to go to a real office to do it; you can do it on their website instead. - You can work out a payment plan with the SSA to get more time to pay the bill if you can’t make the payment all at once.
Making sure you don’t have an extra debt is important because if you don’t deal with it, 50% of your monthly income will be taken to pay the debt.
