In May, a significant milestone was reached in the world of Social Security: for the first time, the average monthly check for retired workers exceeded $2,000.
While this might not seem like much in today’s economy, it is a crucial support system for millions of older Americans trying to stay financially stable in their retirement years.
For many, these monthly payments are essential to covering basic living expenses. According to Gallup surveys, around 80% to 90% of retirees rely on Social Security for their basic financial needs, so any changes to this income can have a profound impact.
Social Security Changes Under Donald Trump’s Administration
Under the leadership of Donald Trump, significant changes have been made to Social Security, affecting millions of recipients.
Some of the changes include stricter identity verification requirements, the end of paper checks, and significant budget cuts that led to the loss of over 7,000 jobs within the Social Security Administration (SSA).
These cuts also resulted in the closure of local SSA offices, making it harder for people to get assistance when needed.
However, one of the most controversial changes is the return and expansion of benefit garnishments. This mainly impacts older Americans who owe federal student loans.
Around 452,000 retirees who have fallen behind on student loan payments are now facing up to 15% of their Social Security checks being withheld.
This garnishment will start later this summer after a pause that lasted throughout the COVID-19 pandemic.
Overpayment Garnishments Affect Over a Million People
Even more concerning is the situation for more than a million Social Security recipients, including retirees, survivors, and vulnerable populations, who are facing garnishments as high as 50% of their monthly benefits.
These individuals are being targeted for alleged overpayments—funds they were not supposed to receive.
In many cases, people affected by this were never properly informed of the overpayment, or they are struggling to appeal in a system that has been slowed down by staffing cuts.
The Return of Overpayment Clawbacks
Overpayment issues with Social Security are not new, but the way they are being handled has changed significantly. During President Biden’s time in office, overpayment clawbacks were capped at 10% of a person’s monthly check.
However, during the Trump administration, these deductions can now go as high as 50% in some cases. In 2022, the SSA sent out more than 1 million overpayment letters, and even more were sent in 2023.
While the most current numbers haven’t been released yet, it’s clear that many people are still facing these steep garnishments as they are asked to pay back money the SSA claims they were never entitled to.
Why Do Overpayments Happen?
Overpayments can happen for various reasons. Sometimes the SSA makes mistakes, and other times beneficiaries fail to report changes in their income or personal situation. For example, a disabled worker may be able to earn up to $1,620 a month without affecting their benefits.
But if they earn more than that, say $3,000 a month, and don’t inform the SSA, they may end up receiving more than they should, and the overpayment issue will arise.
One of the biggest problems is that most people don’t even know they have an overpayment issue until they receive a surprise letter from the SSA demanding repayment.
These letters often come years after the overpayment occurred, leaving people unaware of the situation until it’s too late.
How to Fight or Reduce Garnishment
If you’ve received a garnishment letter, there are steps you can take to address the issue:
- If you think the overpayment was not your fault, you can request a waiver. By filing Form SSA-632BK, you can ask the SSA to forgive the overpayment if you can show that it causes a financial hardship.
- If you believe the SSA has made a mistake or the amount they say you owe is incorrect, you can file Form SSA-561, a request for reconsideration. This could lead to your repayment amount being reduced or canceled.
- If you accept the overpayment claim, you can still request to repay the amount at a slower pace. By filing Form SSA-634, you can explain your situation and request a smaller monthly deduction.
Bottom Line: Stay Alert and Know Your Rights
For many Americans, Social Security checks are not just a benefit—they are a lifeline. But with recent changes, millions of recipients have been caught off guard as their checks are suddenly reduced, sometimes with no warning.
If you receive a letter about garnishment, don’t ignore it. Read it carefully, understand what’s going on, and take action. Knowing your rights and available options is key to navigating these challenges.
FAQs
What is causing Social Security checks to be garnished?
Social Security checks can be garnished due to outstanding federal student loans or overpayment issues, where the SSA claims the recipient received funds they were not entitled to.
How can I stop my Social Security check from being garnished?
You can request a waiver or appeal the garnishment by filing specific forms, such as SSA-632BK for a waiver or SSA-561 for reconsideration.
Why am I getting a letter about overpayment from Social Security?
Overpayments happen when the SSA mistakenly gives you more money than you are entitled to, or when your income changes, but you don’t report it.
What should I do if I receive an overpayment notice?
If you receive an overpayment notice, don’t ignore it. You can file for a waiver, request reconsideration, or arrange to pay it back at a slower rate.
What is the maximum amount that Social Security can garnish from my check?
Garnishments can go up to 50% of your Social Security check, especially if the garnishment is related to overpayments or student loan debts.
The problem with raising social security age. The middle class people work their butts off, they look forward to relaxing at 65. All those making and drainng the social security are millionaires and don’t have to physically work hard. To the average person the gov’t don’t give a shit.