Social Security checks for some Americans to be reduced by 50%

Social Security check roughly half of what you expected? There’s a reason, and it has to do with a change in Social Security Administration policy.

Starting in July, the federal agency will start withholding 50% of a person’s check if they’ve received an overpayment of their benefits. The withholding, officially part of what’s known as the Treasury Offset Program, will remain until the extra benefits are repaid.

Overpayment withholdings were suspended during the COVID pandemic, but were reinstated two years ago, albeit at a lower rate of 10%. The 50% rate is lower than an administration plan announced in March that would have withheld 100% of a check until the overpayment was settled.

Overpayment letters were issued by SSA starting April 25, giving people 90 days’ notice of the withholding. That notice will end around July 24.

At the time of the change, Lee Dudek, acting commissioner of Social Security, said resuming TOP collections was a “critical step in our commitment to being good stewards of taxpayer funds and ensuring the integrity of our programsOverpayments are typically due to miscalculations on what someone is owed or times when a recipient fails to report changes to their income.

Social Security paid out nearly $72 billion in improper payments, mostly overpayments, from 2015 to 2011, USA Today reported. That figure accounted for less than 1% of the almost %8.6 billion in benefits paid. A federal report cited by USA Today showed the agency had $23 billion in uncollected overpayments.

What if you can’t repay what’s owed?

People who are unable to repay can ask SSA for a payment plan or, if they feel the error wasn’t their fault, can request a waiver or appeal. You can see more on that process here.