1. What Is SSI Overpayment?

SSI overpayment occurs when SSA determines that you received more benefits than you were entitled to. This can happen for several reasons, including:

• Changes in your income or assets that were not reported or processed in time
• Changes in living arrangements (such as moving in with someone who helps with expenses)
• Errors in SSA’s calculations or delayed processing of updated information
• Receiving benefits during incarceration or while out of the country longer than allowed

The overpayment notice will include the amount SSA claims you owe, the reason for the overpayment, and instructions on how to repay or appeal.

2. Options When You Receive an SSI Overpayment Notice

When you receive an overpayment notice in Michigan, you generally have three options:

1. Repay the amount in full if you agree with SSA’s determination
2. Request a reconsideration appeal if you believe the overpayment is incorrect
3. Request a waiver if you cannot afford to repay and believe the overpayment was not your fault

3. How to Appeal an SSI Overpayment

If you believe SSA’s overpayment notice is incorrect, follow these steps to appeal:

Step 1: File a Request for Reconsideration

• Complete Form SSA-561 (Request for Reconsideration), available online at SSA.gov or at your local SSA office
• Submit the form within 60 days of receiving the overpayment notice
• You can request reconsideration based on case review, informal conference, or formal conference. Most SSI overpayment appeals are resolved through case reviews unless you request a conference to present evidence in person

Step 2: Gather Supporting Evidence

Include documentation that proves:

• The overpayment calculation is incorrect (e.g. bank statements, pay stubs, benefit letters showing accurate income)
• You reported your income, living arrangement, or resource changes in a timely manner, if SSA claims you failed to report
• Any letters or correspondence with SSA related to your benefits during the period in question

Step 3: Submit Your Appeal

Submit your reconsideration request and supporting evidence to your local SSA field office in Michigan. You can mail, fax, or drop off your appeal. Keep copies of all documents and note the date you submitted them for your records.

Step 4: Follow Up with SSA

After submission:

• SSA will review your reconsideration request and may contact you for additional information
• Decisions on reconsideration can take weeks to months, depending on the complexity of your case
• Continue to check your my Social Security account or call your local office for updates

4. What If You Cannot Afford to Repay SSI Overpayment?

If you agree with SSA’s overpayment finding but cannot afford to repay it, you can request a waiver by filing:

• Form SSA-632 (Request for Waiver of Overpayment Recovery)
• You must prove that the overpayment was not your fault and that repaying it would cause financial hardship, preventing you from paying necessary living expenses such as rent, utilities, or food

If your waiver is approved, SSA will not require repayment. If denied, you can appeal that decision as well.

5. Can SSA Garnish SSI Payments for Overpayment?

Yes, if you do not appeal or repay, SSA will begin to withhold part of your monthly SSI payment to recover the overpaid amount. The standard withholding is 10% of your monthly SSI benefit, but you can request a lower withholding amount based on hardship.

6. Tips to Avoid SSI Overpayment Issues

• Report all income, asset, or living arrangement changes immediately to SSA
• Keep detailed records of all reports, including dates and confirmation of submission
• Review your SSI award letters and notices carefully to ensure payments match your eligibility
• Respond promptly to any requests for information from SSA to prevent delayed updates that cause overpayments