Here’s why your Social Security check could be significantly less than normal in August

Those who receive Social Security benefits may notice their check is smaller than normal this month thanks to a change in policy from the Social Security Administration (SSA). Earlier this year, the SSA announced it was increasing the rate at which benefit overpayments are being recovered.

Under former President Joe Biden, the overpayments were collected at 10%. However, under the new policy shift, the recovery rate is now up to 50% of a monthly benefit payment. That means beneficiaries who’ve been overpaid in the past could see their check cut in half until the money is fully recovered.

For instance, if your monthly benefit payment is for $2,000 per month and the SSA incorrectly overpaid you by $3,000, the agency can take $1,000 of your monthly benefits for three consecutive months in order to recoup the overpayment.

Why is the SSA taking back the money?

The SSA is required by law to recoup overpayments, but no law determines how much the agency can take from benefit payments in order to recover the overpayments. In March, the SSA announced it planned to recoup the money by taking back up to 100% of a monthly benefit check. However, an emergency message sent to employees on April 25 settled on the 50% recovery rate.

How do I know if my benefits are at risk?

When the SSA announced the policy shift in April, the agency said it would begin sending 90 day notices to those who had previously been overpaid. If you received one of the notices, your payments could be subject to being cut.

What can I do if I receive a notice?

The notice gives you the chance to pay back the overpayment entirely in one chunk. However, if you cannot afford to pay it all back at one time, you still have a handful of options that can help.

If you receive a notice, you can appeal the overpayment decision or the amount you owe. You can also request that the SSA waive the overpayment collection if the mistake was not your fault and can’t afford to pay it back.

Beneficiaries can contact Social Security at 1-800-772-1213 or contact their local office to request a lower rate of recovery.

Once a beneficiary submits a request for waiver or reconsideration before 90 days has passed from receiving the notice, the SSA says it will not begin collection of the overpayment until a decision is made.

What if I don’t request a change in collection?

If within the 90 days of the notice being issued the beneficiary does not request a lower rate of withholding, a reconsideration, or a waiver, the money will begin being recouped.

The first round of notices are believed to have been issued on April 25, meaning they likely went into effect on July 24. Since July benefits would have already been paid out by that date, some beneficiaries should begin seeing the reduced payments in their August checks.

How does the policy apply to Supplemental Security Income benefits?

The policy change does not apply to overpayments made to those who receive Supplemental Security Income (SSI). Overpayments made on SSI benefits will continue to be collected at a 10% rate.

It is unclear how many beneficiaries are at risk of having monthly benefits trimmed. A report compiled in August 2024 by the SSA’s Office of the Inspector General found that at the end of fiscal year 2023, the SSA still needed to recover $23 billion in overpayments.