Update to Social Security Overpayment Waiver Process

From Justice in Aging

"A recent change to the process of requesting waiver of Social Security overpayment will make waivers more accessible by using a higher margin when calculating a person's expenses to determine whether repayment would be a financial hardship.

Part of the process to request an overpayment waiver is proving that it would be a financial hardship for the individual to repay the overpayment.  The overpayment waiver form asks for individual's income and expenses, and then compares whether expenses equal or exceed income.  The waiver form previously provided a margin of $25 o expenses, recognizing that every household has some unbudgeted or unaccountable expenses.  This new change provides a higher margin of $55.  Now, total expenses plus the $55 margin will be compared to total income, giving people more leeway for unexpected expenses.  The lower margin had long been challenging for individuals to navigate because $25 did not reflect the reality of current-day household costs.

Though the Social Security Administration has now updated that margin to $55, GN 02250.100 (section D4), the overpayment waiver form has not been updated yet.  Regardless, the $55 margin will apply going forward and waiver requests will be processed using the updated margin.  This update will make the waiver process more accessible to everyone requesting waiver of an overpayment, by providing a documentation requirement that better reflects current financial realities for older adults and people with disabilities who receive Social Security benefits."