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Home » Glossary » Overpayment

Definition of Overpayment

An overpayment is any money received by a Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) claimant which the claimant was not entitled to receive. Returning to work and earning too much money is the most common reason a claimant will get an overpayment. All claimants who are receiving SSI should notify the SSA immediately if they return to work. Earnings from work will offset SSI payments each month. But if the work earnings are not reported the claimant will have an overpayment. Other reasons a claimant may have an overpayment is if they marry and their spouse earns too much money or if they are living with someone providing food or shelter.

Claimants may have the legal right to challenge overpayments or negotiate a repayment plan with the Social Security Administration. If the SSA has miscalculated an overpayment or the overpayment is not due to the claimant's actions it may be waived.

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