How to Appeal a Denial of a Request for Waiver of an Overpayment

Has the Social Security Administration (SSA) sent you a letter that says your SSDI or SSI benefits have been overpaid? Overpayments can be the result of a clerical error or because of something you did (or failed to do—like not reporting income or employment changes right away). You might not have even realized you'd been overpaid until you received a notice. But when the SSA pays you too much money, the agency generally expects you to return it.

If you disagree that you were overpaid or you can't afford to return the money, you can request an overpayment waiver or reconsideration. Then, if Social Security grants your waiver request, you won't have to pay the money back. But if the agency denies your request, you can appeal. The appeal process varies slightly depending on whether you were overpaid SSDI or SSI. It's important to become familiar with all your options so that you have your best chances of a successful appeal.

When Can You Request a Social Security Overpayment Waiver?

If Social Security sends you a notice that says your benefits have been overpaid, you have the right to request a "waiver of overpayment." For people receiving SSI, you can request a waiver of overpayment at any time. You can even request a waiver after you've begun paying back the overpayment (or completely repaid it).

For beneficiaries receiving SSDI, you can request an overpayment waiver (or reconsideration) when:

• you don't believe that Social Security has paid you more than you're entitled to receive
• you agree you were overpaid, but you believe the amount the agency says they overpaid you is incorrect, or
• you agree that Social Security has overpaid you, but you didn't cause the overpayment and you can't afford to pay it back.

In either case, you'll need to explain why you believe you shouldn't have to repay the overpayment. If Social Security denies your request for a waiver of overpayment, you can appeal. The specific steps you'll need to take in order to appeal differs depending on whether the overpayment is for SSDI or SSI benefits.

Appealing a Denial of an SSI Overpayment Waiver Request

SSI recipients can ask for reconsideration of a denied request for an overpayment waiver in writing or online. To file your request in writing, you'll need to use Form SSA-561, Request for Reconsideration. When filling out the form, you can write "Overpayment waiver denial" in the field that says "Issue being appealed."

You also have the option to appeal the overpayment online by going to Social Security's website and requesting a "Reconsideration for a Non-Medical Determination." This is the same online reconsideration request you would've used had your SSI application been denied for non-medical reasons.

How to Complete the Reconsideration Request Form for an SSI Overpayment

When you fill out the Request for Reconsideration form, you'll need to choose how you want Social Security to review your case. You'll check a box on the form to indicate which of the three options you prefer. You can choose from the following:

• Case review. In a case review, a Social Security employee reviews your file and makes another decision on your request. You can provide additional information before review.
• Informal conference. This method gives you the opportunity to sit down with a Social Security employee to tell your side of the story about why you shouldn't have to repay the overpayment. You're allowed to bring witnesses if you choose to do so.
• Formal conference. A formal conference is similar to an informal conference, but Social Security can require witnesses to attend even if they don't want to. You can question these witnesses at the conference.

In most cases, you'll want to request at least an informal conference so that you can speak with someone at Social Security about why you should get a waiver.

Deadline to Submit the SSI Reconsideration Request

You must file your request for reconsideration within 60 days of the date you received the letter telling you that the SSA denied your request to waive the overpayment. The agency calculates the deadline by assuming that you received the notice five days after the mailing date listed on the first page of the notice. If you miss the appeal deadline, you'll have to prove to the SSA that your notice didn't arrive on time or that you have a very good reason for filing late.

To avoid putting yourself in that position, it's best to submit your appeal forms as soon as you get your denial notice. Furthermore, if you file your reconsideration request within 30 days, the SSA won't try to collect the overpayment from you while it makes a decision about your case.

Appealing a Denial of an SSI Reconsideration Request

If, after you've timely submitted Form SSA-561, you get notice that Social Security has denied your request for reconsideration, you can appeal this decision as well. To continue your SSI overpayment waiver appeal, you'll need to request a hearing. The instructions for requesting an appeal hearing for an SSI overpayment waiver are the same as those for an SSDI overpayment waiver appeal (see below).

Appealing a Denial of an SSDI Overpayment Waiver Request

SSDI recipients can appeal the decision by directly requesting a hearing before an administrative law judge. Unlike with SSI beneficiaries, Social Security doesn't require a reconsideration step if the agency denies your request to waive an SSDI overpayment.

Requesting a Social Security Overpayment Waiver Hearing

To file your appeal from a denial of a waiver request, you'll need to complete Form HA-501, Request for Hearing by Administrative Law Judge, and turn it in at your local Social Security field office within 60 days of receiving your denial letter. (The same deadlines apply at this stage of appeal.) You can find your Social Security field office by putting your zip code into the agency's locator tool.

The overpayment waiver hearing will be similar in format to a disability determination hearing. The hearing can be held in person, by phone, or by videoconference. You can ask the SSA to subpoena (formally order) witnesses or documents for you to help show that the overpayment should be waived.

Further Levels Of Appeal

If the judge denies your request to waive your overpayment, you can appeal to the Appeals Council. To do that, submit Form HA-520, Request for Review of Hearing Decision/Order, within 60 days of receiving the judge's decision. The Appeals Council will review the decision and take one of three actions—deny your request to review the decision, issue another decision in your case, or remand the case (send it back) to the judge.

If the Appeals Council also denies your request for review, you can appeal by filing a complaint in federal district court. You must file your complaint within 60 days of receiving the Appeals Council's denial. You'll need an attorney to file a federal court complaint if you haven't gotten one yet.

Common Reasons for a Waiver of Overpayment Denial

There are several reasons why Social Security might deny your request for an overpayment waiver. These can include:

• unreported changes in your marital status
• receiving resources that put you above the SSI asset limit
• earning wages that put you above the SSI income limit
• starting work at or above the level of substantial gainful activity
• not enough evidence of financial hardship to justify the waiver, and
• evidence that the benefits were obtained fraudulently.

Overpayment waivers are typically granted if two things are true: it wasn't your fault that you got too much money from the SSA, and requiring you to pay it back would mean that you couldn't afford food, clothing, housing, medical care, or other necessary expenses. In order to make a successful appeal, it's important to gather information showing that the overpayment wasn't your fault and it would be a significant financial burden on you to pay it back.

Evidence You Need to Appeal an SSDI or SSI Overpayment Waiver Denial

Because you need to show that the overpayment wasn't your fault and it would cause financial hardship or be "against equity and good conscience" in a broader sense (20 C.F.R. § 404.509), your appeal should contain documentation that supports these findings. Evidence showing that you weren't at fault for the overpayment could include:

• proof that you reported the relevant change on time (such as certified mail receipts)
• copies of letters, email, or SSA notices that you sent or received about the benefits
• doctors' notes about a medical condition that affects your communication abilities, or
• affidavits (signed statements) from people who can vouch for your efforts to comply.

Evidence showing that repayment would cause you to suffer financial hardship could include:

• recent pay stubs and bank statements
• your current lease or mortgage agreement
• a detailed budget showing your income and expenses
• utility, insurance, medical, and credit card bills
• tax returns, and
• proof of any other public assistance you receive (such as food stamps or housing aid).

Any evidence that you relied on the payments when making a decision that changed your position for the worse—like assuming a debt obligation that you would have been able to meet had the payments continued—should also be offered as proof that it would be unfair to make you repay the amount of the overpayment.

How Social Security Collects Overpayments

If Social Security doesn't grant your request for an overpayment waiver, the agency will withhold all or some of your benefits until it recovers the total amount of the overpayment. How much Social Security takes depends on the type of benefits that were overpaid.

If you receive SSI (or SSI and SSDI), Social Security can't take more than 10% of your monthly benefit to pay down an overpayment.

If you receive SSDI only and you receive an overpayment notice on or after April 25, 2025, Social Security will withhold up to 50% of your SSDI monthly benefit until the agency has recovered the overpayment amount.

Both SSI and SSDI recipients can ask Social Security to set up an affordable repayment agreement. To change the amount of money withheld from your SSDI or SSI check, fill out Form SSA-634, Request for Change in Overpayment Recovery Rate. When Social Security is considering whether to approve a payment agreement for an SSDI recipient, the agency will want an agreement that results in the overpayment being paid off within three years.

Do I Need to Get Legal Assistance?

Finding a disability attorney to help you with your overpayment appeal can be challenging. That's because Social Security requires that disability lawyers be paid from any past-due benefits that you're entitled to if you win your claim. Because overpayments are, in a way, the opposite of past-due benefits (since instead of the SSA owing you money, you owe the SSA) few lawyers are willing to take up overpayment cases as they risk not getting paid for their work.

Disability attorneys who do take on overpayment cases will almost certainly ask you to pay a retainer fee that covers the amount of work they'll perform. Some legal aid organizations may also take on overpayment cases pro bono, meaning at no cost to you. For more information, see our article on how to find a lawyer to help you fight a Social Security overpayment.