SSA to Withhold 50% for Overpayments in July 2025
SSA to Withhold 50% for Overpayments in July 2025

SSA to Withhold 50% for Overpayments in July 2025

News summary

Beginning in July 2025, the Social Security Administration (SSA) will withhold up to 50% of monthly benefits from around two million recipients who have been overpaid, raising the previous withholding cap from 10%. This policy aims to recover billions in overpayments primarily caused by misreported income or administrative errors, with over $72 billion in improper payments issued between 2015 and 2022. Affected beneficiaries will receive a 90-day advance notice and may appeal or request a waiver if repayment causes hardship or was not their fault. The SSA chose the 50% withholding rate after criticism of a proposal for 100%. Regular Social Security payments and cost-of-living adjustments remain unchanged for those not receiving overpayment notices, and retired workers' average monthly benefits surpassed $2,000 for the first time in May 2025. The increased withholding rate is expected to impact vulnerable households relying on Social Security as their main income.

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