Government Wants Their Money Back: $2.7 Billion in Social Security ‘Overpayments’ Revealed

Imagine opening your mailbox and seeing a letter from Social Security. You think it’s just the usual notice—until you read it. Suddenly, it’s saying you owe the government thousands of dollars… and they want it back. Now.

Unfortunately, this isn’t a scam or mistake. It’s happening to a lot of people right now.

The Social Security Administration (SSA) is trying to recover $2.7 billion in overpaid benefits from nearly 280,000 people. Many of them are retirees, people with disabilities, or folks living on limited income. And now, they’re being asked to pay back money they never even realized was “extra.”

Let’s talk about why this is happening, what it means, and what you can actually do if it happens to you.

Why Is the Government Asking for Money Back?

Sometimes, the SSA accidentally sends people more money than they should—maybe because of outdated records, missed updates, or just plain errors in the system.

A lot of the time, people don’t even know they were overpaid. Maybe you changed jobs, got married, or had a change in income that wasn’t updated quickly in the system. Or maybe the government just made a mistake. Either way, once they notice it—even if it’s years later—they send a notice asking for the money back.

And that’s where the stress begins.

They Paused Collections During COVID. Now They’re Back.

Back when COVID hit, the SSA temporarily stopped collecting these overpayments to give people a break. But as of March 2025, those collections have started up again.

They’re using something called the Treasury Offset Program to do it. That means if you owe money, the government can take it from things like your tax refund or other federal payments.

Before the pause in 2020, they had already used this program to collect almost $2 billion. And now it’s back in full swing.

The Big Change: Taking Your Entire Social Security Check

Here’s the part that’s really shaking people: the SSA can now take 100% of your monthly Social Security check if they say you were recently overpaid.

That’s right. Your entire check.

Before, they could only withhold about 10% of your monthly payment. But now, if the overpayment happened recently, they can take the full amount. For someone relying on that money to pay rent, buy groceries, or afford medicine, that can feel like the rug’s being pulled out from under you.

They say this new policy could save the system billions over the next 10 years. But for the people living month to month? It’s scary.

What Can You Do If You Get One of These Notices?

If this happens to you, don’t ignore it—and don’t panic. You’ve got options.

1. Ask for a Waiver
If you didn’t do anything wrong and paying the money back would put you in a tough spot financially, you can ask the SSA to cancel the repayment.

2. Appeal It
Think they’re wrong? You can file an appeal and ask them to take another look. While they’re reviewing it, they’ll usually pause any collection.

3. Set Up a Payment Plan
If you can’t afford to lose your full check every month, you can ask to repay the money in smaller amounts over time.

And here’s something important: they can’t keep collecting from you while your waiver or appeal is being looked at. So even if it’s overwhelming, take action quickly—it can make a big difference.

Need Help? You’re Not Alone

If you’re unsure what to do next, you can talk to someone:

• Call Social Security at 1-800-772-1213

• Visit your local SSA office

• Go to www.ssa.gov for more info

This situation is confusing, stressful, and—for many—totally unexpected. But there is help, and there are real options.

This whole thing feels unfair to a lot of people. You did everything right, reported your income, showed up for appointments—and now you’re told you owe thousands for a mistake you didn’t make?

It’s okay to be frustrated. But don’t let that keep you from speaking up or getting the help you deserve. Whether it’s applying for a waiver, filing an appeal, or just asking questions—you have a voice, and you have rights.