Social Security overpaid a woman by $35,000. Now the agency wants its money back
Updated on: September 3, 2026 / 4:35 PM EDT / CBS News
TL;DR
- Over 75 million Americans receive Social Security benefits, with many facing demands to repay overpaid funds.
- Recipients are legally obligated to repay overpayments, regardless of who caused the error.
- A woman was informed she owes $35,000 due to a four-year overpayment, leading to a reduction in her monthly benefits.
- Reasons for overpayment include changes in income, marital status, or agency miscalculations.
- Beneficiaries can appeal overpayment decisions or request a waiver if repayment would cause financial hardship and they were not at fault.
- Understaffing at the SSA can lead to delays in processing changes, causing overpayments.
- Experts advise recipients to act quickly to appeal or seek waivers, and to document all communications.
- The agency can reduce benefits by 50% to recover overpayments if repayment or an appeal isn't processed.
- Repayment plans with lower monthly installments can be requested if the default rate causes financial distress.