Next month will mark the 90th anniversary since the Social Security Act was signed into law. Its goal was to provide a financial floor for aged workers who were no longer able to provide for themselves.
Nine decades later, an overwhelming majority of the 53 million retired workers who receive a monthly benefit from Social Security count on this income to make ends meet. In each of the last 24 years, national pollster Gallup has surveyed retirees to gauge how reliant they are on their Social Security income. In April, a combined 86% noted it was needed, in some capacity, to cover their expenses.
For aging workers, along with workers with disabilities and survivor beneficiaries, nothing holds more importance than knowing how much they'll be receiving on a monthly basis from the Social Security Administration (SSA).
But for potentially more than 1 million beneficiaries, their monthly Social Security check is now enduring a significant haircut.
President Trump delivering remarks. Image source: Official White House Photo by Andrea Hanks, courtesy of the National Archives.
Donald Trump's administration aims to claw back Social Security overpayments
Since President Donald Trump began his second nonconsecutive term a little over six months ago, a multitude of changes have been made to America's leading retirement program. Some of these changes include the end to paper checks by Sept. 30, 2025 (via a Trump executive order), as well as beefed-up personal identification measures for beneficiaries.
But the biggest Social Security changes undertaken by the Trump administration have to do with the reinstatement/adjustment of two garnishments. For instance, the president's administration has suggested that, by "sometime this summer," garnishments of up to 15% may recommence for delinquent federal student loan borrowers who are receiving a Social Security benefit.
However, clawing back benefits from those who've been overpaid by the SSA is now in full effect, as of July 24.
According to the SSA's Office of the Inspector General, approximately $23 billion in Social Security overpayments remained uncollected at the end of fiscal 2023 (the federal government's fiscal year ends on Sept. 30). With President Trump making government inefficiency one of his primary focuses, the SSA is being tasked with collecting overpayments from nearly 2 million beneficiaries (as of the end of fiscal 2023), per Cox Media Group and KFF.
During Joe Biden's presidency, the garnishment rate for overpayments was lowered to just 10%, which is well below the 100% clawback rate present during Barack Obama's presidency and Donald Trump's first term. In March 2025, the SSA announced plans to reintroduce the 100% garnishment rate, but ultimately halved it to 50% following public backlash.
The SSA began sending out notices to those who've been overpaid on April 25, which provided these folks with a 90-day grace period to "request a lower rate of withholding, a reconsideration, or waiver." This 90-day grace period ended on July 24, which means at least some of these 1 million-plus beneficiaries are now seeing 50% of their monthly benefit check garnished to satisfy their overpayment.
Image source: Getty Images.
There are three ways to legally avoid or reduce a Social Security garnishment caused by overpayment
In some instances, Social Security overpayments are entirely the fault of the SSA. In other cases, it could be the end result of a beneficiary failing to update their income.
For example, non-blind workers with disabilities can earn up to $1,620 per month in 2025 without their Social Security disability benefits stopping. But if a worker generates more income than $1,620/month and fails to report it to the SSA, they'll be paid more than they're due. Knowing where the fault for the overpayment lies can have a significant impact on your ability to potentially avoid or reduce how much you'll have to pay back.
The SSA offers three perfectly legal options for beneficiaries to satisfy their overpayment beyond just paying back the full amount immediately.
The most desirable of the three options is getting the overpayment completely waived by the SSA. Form SSA-632BK ("Request for Waiver of Overpayment Recovery") is an option when the overpayment wasn't your fault and it would create a financial hardship to pay back the extra benefits you received. You'll likely need to supply documentation of your qualified expenses to verify your financial hardship. If approved by the SSA, your SSA-632BK request will completely waive any liability for your overpayment.
The second completely legal option available to overpaid beneficiaries is to file Form SSA-561 ("Request for Reconsideration"). Some beneficiaries who take this route are doing so with the goal of getting their overpayment liability waived. You'll need to provide evidence to the SSA that you haven't been overpaid, and if the agency agrees, it'll waive your liability.
SSA-561 is also an option in instances where beneficiaries admit they've been overpaid, but who simply don't agree with the amount the SSA is asking for in repayment. Once again, you'll have to provide evidence of the amount you believe you've been overpaid, and if the SSA agrees, it'll reduce your overpayment liability.
The third legal option for overpaid beneficiaries is Form SSA-634 ("Request for Change in Overpayment Recovery Rate"). This is the best option for beneficiaries who freely admit they've been overpaid, but who would struggle with a financial hardship if 50% of their monthly Social Security income were garnished.
Filing Form SSA-634 will require beneficiaries to provide documentation of their qualified expenses to establish a financial hardship. Though the SSA typically aims to collect overpayments within 12 months, the agency will, on occasion, extend repayments out to 60 months.
