Some Americans Could Experience a 50% Cut in Their Social Security Checks In July

Some Americans Could Experience a 50% Cut in Their Social Security Checks
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Americans might discover that the Social Security Administration has cut their Social Security payments in half beginning this month.

The Social Security Administration will withhold 50% of a person’s check in July if they previously issued an overpayment to that individual. The Treasury Offset Program (TOP) carries out this action, holding back the money until people make their repayments.

Overpayments happen when beneficiaries don’t inform the SSA about life changes like their work capacity, living arrangements, marriage status, or income levels. The administration’s website explains that this leads to Social Security paying people more than they should receive.

The Social Security Administration suspended overpayment withholdings during the COVID-19 pandemic but brought them back two years later at 10%. July’s 50% reduction falls short of the administration’s March announcement that it would increase the default withholding rate for beneficiaries to 100%.

The Social Security Administration distributed overpayment notices on April 25, stating that it would start withholding 50% of recipients’ benefits after 90 days (approximately July 24) until people repay their overpayments.

“Resuming collections through the Treasury Offset Program is a critical step in our commitment to being good stewards of taxpayer funds and ensuring the integrity of our programs,” Lee Dudek, then acting commissioner of Social Security said in a statement at the time. “We are dedicated to recovering overpayments while providing individuals with the necessary information and options to address their debts.”

An SSA report shows that from fiscal years 2015 through 2022, the SSA estimates it made nearly $72 billion in improper payments, with overpayments accounting for most of these errors.

USA Today reported that this represents less than 1% of nearly $86 billion in benefits paid. The agency carried $23 billion in uncollected overpayments as of September 2023.

People can make payments by credit card, online bill pay, or check. You can find information about repayment options here.

Individuals can request waivers to avoid repaying the overpayment if they don’t believe the error was their fault or they cannot afford to repay the amount.

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