Could your Social Security check be cut in half? Here's what to know about the July changes
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If you or someone you know receives Social Security, there’s a change rolling out this summer that’s raising a lot of questions.
It doesn’t involve benefit cuts for everyone, but it could affect certain payments.
The Social Security Administration has announced a policy shift that’s already sparking conversation—and concern.
The full impact won’t hit until July, but many recipients may start seeing smaller checks.
Here’s what’s happening, why it matters, and what to do if it affects you.
What’s changing in July—and why
This isn’t about the long-term Social Security trust fund issues or general benefit reductions.
Instead, it’s about how the SSA handles overpayments—money sent out in error due to reporting issues or agency miscalculations.
Between 2015 and 2022, nearly $72 billion in improper payments were made by the SSA. And as of September 2023, there were still $23 billion in uncollected overpayments.
Now, the SSA is changing how aggressively it collects those funds.
Starting in late July, if you’ve been flagged for an overpayment, the SSA will begin withholding 50% of your monthly benefit to recover what’s owed.
Previously, they only withheld 10%. Although they considered collecting 100% at one point, backlash led to a less severe—but still significant—approach.
Also read: Worried about losing part of your Social Security? Here’s what the new overpayment rule means for your check
What this means for your benefits
Let’s say you receive $1,600 a month in benefits. If you’ve been overpaid, your monthly check could drop to $800 until the debt is repaid.
That’s a major reduction, especially for those who rely solely on Social Security.
This 50% withholding will only apply after a 90-day notice window, giving recipients time to respond or challenge the action.
The SSA plans to begin mailing notices starting April 25, which means withholding won’t begin before late July.
Also read: Social Security garnishments are rising—Here’s how to protect your benefits
How overpayments happen—and who’s affected
Overpayments can result from many factors: changes in income, unreported living arrangement changes, or simple SSA system errors.
In many cases, recipients aren’t even aware an overpayment occurred until they get a letter in the mail.
Former Social Security Commissioner Martin O’Malley acknowledged the damage this can cause: “Innocent people can be badly hurt.”
In the past year alone, the SSA has pursued overpayments from approximately 2 million people.
Also read: Don’t let these 3 surprising Social Security changes drain your retirement in 2025
What to do if you get an overpayment notice
If you receive one of these letters, don’t panic—but don’t ignore it either. Here are your main options:
Be sure to act within the 90-day window, and keep records of all communication.
Write down names, dates, and details from any phone calls or correspondence with the SSA.
If you need help, reach out to a trusted family member, a legal advocate, or your local Social Security office.
Also read: A simple oversight, a lifetime of consequences–How a simple error slashed this woman’s Social Security to just $14
How to prevent overpayment issues
While some errors are out of your hands, here are a few steps that can help reduce your risk:
Mistakes happen—even in big government systems—and this new SSA policy is an attempt to address years of improper payments.
Still, it could cause hardship for many people who did nothing wrong.
The key takeaway? Be informed, stay alert to mail from the SSA, and take action if you're contacted.
Read next: Protect your retirement! Beware of these 6 Social Security scams on the rise in 2025
Have you ever received an overpayment notice from Social Security? What steps did you take—and what advice would you give others going through it now? Share your thoughts and questions in the comments below.
It doesn’t involve benefit cuts for everyone, but it could affect certain payments.
The Social Security Administration has announced a policy shift that’s already sparking conversation—and concern.
The full impact won’t hit until July, but many recipients may start seeing smaller checks.
Here’s what’s happening, why it matters, and what to do if it affects you.
New Social Security policy changes could affect some recipients’ monthly payments starting this July. Image Source: YouTube / CBS Mornings.
What’s changing in July—and why
This isn’t about the long-term Social Security trust fund issues or general benefit reductions.
Instead, it’s about how the SSA handles overpayments—money sent out in error due to reporting issues or agency miscalculations.
Between 2015 and 2022, nearly $72 billion in improper payments were made by the SSA. And as of September 2023, there were still $23 billion in uncollected overpayments.
Now, the SSA is changing how aggressively it collects those funds.
Starting in late July, if you’ve been flagged for an overpayment, the SSA will begin withholding 50% of your monthly benefit to recover what’s owed.
Previously, they only withheld 10%. Although they considered collecting 100% at one point, backlash led to a less severe—but still significant—approach.
Also read: Worried about losing part of your Social Security? Here’s what the new overpayment rule means for your check
What this means for your benefits
Let’s say you receive $1,600 a month in benefits. If you’ve been overpaid, your monthly check could drop to $800 until the debt is repaid.
That’s a major reduction, especially for those who rely solely on Social Security.
This 50% withholding will only apply after a 90-day notice window, giving recipients time to respond or challenge the action.
The SSA plans to begin mailing notices starting April 25, which means withholding won’t begin before late July.
Also read: Social Security garnishments are rising—Here’s how to protect your benefits
How overpayments happen—and who’s affected
Overpayments can result from many factors: changes in income, unreported living arrangement changes, or simple SSA system errors.
In many cases, recipients aren’t even aware an overpayment occurred until they get a letter in the mail.
Former Social Security Commissioner Martin O’Malley acknowledged the damage this can cause: “Innocent people can be badly hurt.”
In the past year alone, the SSA has pursued overpayments from approximately 2 million people.
Also read: Don’t let these 3 surprising Social Security changes drain your retirement in 2025
What to do if you get an overpayment notice
If you receive one of these letters, don’t panic—but don’t ignore it either. Here are your main options:
- Repay the amount directly by credit card, check, or online.
- Request a waiver if you believe the overpayment wasn’t your fault or if repaying it would create financial hardship.
- File an appeal if you believe the SSA made a mistake in its calculation.
Be sure to act within the 90-day window, and keep records of all communication.
Write down names, dates, and details from any phone calls or correspondence with the SSA.
If you need help, reach out to a trusted family member, a legal advocate, or your local Social Security office.
Also read: A simple oversight, a lifetime of consequences–How a simple error slashed this woman’s Social Security to just $14
How to prevent overpayment issues
While some errors are out of your hands, here are a few steps that can help reduce your risk:
- Report any changes in your income, marital status, or household promptly to the SSA.
- Review your statements regularly to check for inaccuracies.
- Open and read all SSA mail carefully. If you receive a notice, acting quickly gives you more control and better options.
Mistakes happen—even in big government systems—and this new SSA policy is an attempt to address years of improper payments.
Still, it could cause hardship for many people who did nothing wrong.
The key takeaway? Be informed, stay alert to mail from the SSA, and take action if you're contacted.
Read next: Protect your retirement! Beware of these 6 Social Security scams on the rise in 2025
Have you ever received an overpayment notice from Social Security? What steps did you take—and what advice would you give others going through it now? Share your thoughts and questions in the comments below.
