What Is a Disability Overpayment?

Definition of Overpayment

An overpayment occurs when the SSA pays you more money than you were entitled to receive, usually because of:

• Changes in your income or work activity
• Changes in living arrangements or marital status
• Medical improvement that affects your eligibility
• Administrative errors by the SSA

Once the SSA discovers an overpayment, they’ll issue a Notice of Overpayment detailing the amount owed and why they believe the overpayment occurred.

Steps to Handle Disability Overpayments in Mississippi

Step 1: Read the Notice Carefully

The SSA’s letter will explain:

• The total amount of the overpayment
• The reason they believe the overpayment occurred
• Your options for repayment, appeal, or waiver

It’s crucial to review this notice immediately, as your time to respond is limited.

Step 2: Decide How to Respond

You have three main options:

1. Repay the Full Amount
If you agree with the SSA and are able, you can repay the amount in full. The SSA provides instructions for payment in the notice.

2. Request a Payment Plan
If you can’t repay the full amount at once, you can request a monthly repayment plan. Be sure to explain your financial situation and what you can realistically afford.

3. Appeal or Request a Waiver
If you believe the overpayment is incorrect or not your fault, or if paying it back would cause you financial hardship, you can:

• File Form SSA-561 to appeal the overpayment decision.
• File Form SSA-632 to request a waiver, which asks the SSA to forgive the overpayment entirely or partially.

Important: You must appeal or request a waiver within 60 days of receiving the overpayment notice.

Tips for Dealing with Disability Overpayments in Mississippi

Don’t Ignore the Notice

Failing to respond may result in the SSA automatically withholding a portion of your monthly benefits to recover the debt.

Keep Records

Maintain all SSA communications, forms, and payment receipts. Documentation is key, especially if you are requesting a waiver or appeal.

Explain Your Hardship Clearly

If requesting a waiver, be thorough in explaining your financial situation. Include bank statements, bills, rent/mortgage documents, and medical expenses to demonstrate hardship.

Seek Guidance

Overpayment situations can be legally and financially complex—especially if you weren’t aware an error occurred.