Social Security Overpayment Notice: Appeal, Waiver (SSA-632) or Lower Withholding (SSA-634)

Published by the Modern Lending Solutions editorial team. Last reviewed: October 30, 2026.

Short answer: read the notice first. You can ask Social Security to reconsider whether you were overpaid or how much, ask it to waive repayment if you were not at fault and cannot afford to repay (Form SSA-632), or ask for a smaller monthly withholding (Form SSA-634). Asking within 30 days of the notice matters. Look at these options before you borrow to repay. This is general information, not legal or financial advice.

A note on sources: the main Social Security website did not load for us on October 30, 2026, so this page cites the federal regulations on eCFR (text up to date as of October 28, 2026), Social Security notices in the Federal Register and a Social Security policy instruction. Check your notice and ssa.gov for the current forms and rates.

What the notice must tell you

When Social Security finds an overpayment and seeks to recover it, the notice includes the amount and “how and when it occurred”, a request for a full refund unless it can be withheld from the next month’s benefit, the proposed withholding if you do not refund within 30 days, and your rights to ask for a waiver, for reconsideration, and for a different rate of withholding or installments (20 CFR 404.502a, eCFR, read October 30, 2026). It must also explain “that if the individual does not request waiver or reconsideration within 30 days of the date of the overpayment notice, adjustment or recovery of the overpayment will begin”, and that “an SSA office will help the individual complete and submit forms for appeal or waiver requests” (404.502a(h) and (i)).

Option 1: ask for reconsideration

If you think you were not overpaid, or the amount is wrong, you can ask Social Security to reconsider. The request must be in writing and filed “Within 60 days after the date you receive notice of the initial determination”, and you can ask for more time if you have good cause (20 CFR 404.909, eCFR). For SSI the rule is the same 60 days (20 CFR 416.1409, eCFR). Keep in mind the 30-day point above: asking within 30 days of the notice keeps recovery from starting.

Option 2: ask for a waiver (Form SSA-632)

For Social Security benefits, the regulation says there is no recovery “where an overpayment under title II has been made to an individual who is without fault if adjustment or recovery would either defeat the purpose of title II of the Act, or be against equity and good conscience” (20 CFR 404.506(a), eCFR). “Defeat the purpose” means depriving a person “of income required for ordinary and necessary living expenses” such as food, rent, utilities and medical costs (20 CFR 404.508, eCFR). SSI has a similar waiver rule (20 CFR 416.550, eCFR).

Timing: if you ask for a waiver within 30 days after receiving the notice, “no adjustment or recovery action will be taken until after the initial waiver determination is made.” If you ask later, Social Security “will stop any adjustment or recovery actions until after the initial waiver determination is made” (404.506(c)). If the paper review does not end in a waiver, you are offered a file review and a personal conference, face-to-face, by phone or by video (404.506(d)).

The form: a March 11, 2025 Federal Register notice says overpaid people “can use Form SSA-632-BK, Request for Waiver of Overpayment Recovery, to request a waiver from repaying their overpayment”, and must give financial information (Federal Register, March 11, 2025). A February 26, 2026 notice adds that you may instead send a personal statement “by mail, telephone, personal contact, or other suitable method, such as fax or email” (Federal Register, February 26, 2026).

Option 3: ask for lower withholding (Form SSA-634)

The same March 2025 notice says you “can also use Form SSA-634, Request for Change in Overpayment Recovery, to request a change to the monthly recovery rate of their overpayment” (Federal Register).

Social Security benefits: the regulation lets Social Security withhold the full benefit until the overpayment is repaid, but where full withholding “would defeat the purpose of title II”, it may withhold “an amount of not less than $10 of the monthly benefit” (20 CFR 404.502(a) and (c), eCFR). This option is not available if the overpayment was caused by an intentional false statement or willful concealment (404.502(c)(2)).
SSI: withholding in a month is limited to the lesser of that month’s payment or “an amount equal to 10 percent of the individual’s total income”, and you may ask for a higher or lower rate (20 CFR 416.571, eCFR). The 10% limit does not apply in cases of fraud, willful misrepresentation or concealment.

The default rate: a Social Security instruction to its staff says “Effective April 25, 2025, overpayment notices provided a default Title II overpayment benefit withholding rate of 50 percent of the monthly benefit”, and that “The Title XVI overpayment recovery rate will remain at 10 percent” (SSA EM-25029 REV, effective August 28, 2025, read October 30, 2026). Title II is Social Security benefits and Title XVI is SSI. Your notice gives the proposed rate; that is the figure to use (404.502a(c)), and you can ask for a lower one.

Before you borrow to repay, only for the math

This example is only for the math. The $1,200.00 overpayment and $1,000.00 monthly SSI total income are example figures. At the 10% SSI limit, withholding is $1,000.00 x 10% = $100.00 a month, so $1,200.00 / $100.00 = 12 months. Borrowing $1,200.00 instead over 24 months at the Federal Reserve’s August 2026 average of 11.90% for 24-month personal loans (G.19) would cost $56.43 a month, $56.43 x 24 = $1,354.32 in total, $154.32 of it interest. Your rate depends on your credit and the lender. A waiver, a correction on reconsideration, or a lower withholding rate are worth asking about first.

If you still need to borrow, see personal loans on Social Security income and how to budget for a loan payment.

Questions to ask Social Security

How and when did the overpayment happen, and how was the amount figured?
What withholding rate are you proposing, and when does it start?
If I ask for a waiver or reconsideration now, will recovery wait until you decide?
Can I send the waiver request by phone or a personal statement, or do you need Form SSA-632?
What financial records should I send with Form SSA-632 or SSA-634?
Can an office help me fill out the forms?

Checklist

Write down the date on the notice and count 30 and 60 days.
Decide whether you dispute the overpayment (reconsideration), cannot repay (waiver), or need a lower rate (SSA-634). Ask whether you can request more than one.
Gather proof of income and living expenses.
Keep copies of everything you send and note who you spoke with.
Compare any loan’s total cost with the withholding plan before you borrow.

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Sources

Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.

Social Security Says You Were Overpaid: Your Options Before You Borrow