Quick answer: When SSI overpayments get waived (and how SSA-632 works)
If you’re without fault and paying SSA back would either defeat the purpose of SSI (cause hardship) or be against equity and good conscience (unfair due to reliance), SSA can waive recovery of the overpayment. Use Form SSA-632—or, for $2,000 or less, SSA often applies an administrative tolerance and may waive without making you complete the form. secure.ssa.gov+3Social Security+3Social Security+3
Bottom line: If you meet the tests below, you can stop collections and erase the debt.
Do you qualify? The three waiver tests (plain English)
1) You were without fault
SSA must find you didn’t cause the overpayment—e.g., you reported changes timely, followed SSA’s instructions, or the error was SSA’s. POMS lists presumptions of “not at fault” and situations to weigh (like agency misinformation or math errors). secure.ssa.gov
Bottom line: Show how you complied (or reasonably relied on SSA) with dates and copies.
2) Recovery would defeat the purpose of SSI (hardship)
For SSI, SSA waives if paying back would deprive you of money needed for ordinary and necessary living expenses. SSA also has a shortcut: if you’re currently eligible for SSI and your current monthly income doesn’t exceed the sum of the SSI rate + applicable exclusions + state supplement, you meet this test. Social Security
Bottom line: Document rent, utilities, food, medical costs, transportation—tie them to SSA’s categories.
3) Recovery would be against equity and good conscience
SSA waives if you relied on a payment/notice and changed your position for the worse or gave up a valuable right (for example, you signed a lease or bought essentials relying on SSA’s letter). SSA expanded examples in recent guidance, strengthening claimant-friendly reliance scenarios. Social Security+1
Bottom line: Write a short narrative: what SSA told you/paid, what you did because of it, and the harm if you must repay.
Special SSI rule: Administrative tolerance ($2,000 or less)
If the original overpayment is $2,000 or less and there’s no fraud/duplicate check issue, SSA presumes you’re not at fault and waives based on “impede efficient administration.” You typically do not need to complete SSA-632—SSA can process it by phone or office request. (If they can’t presume not-at-fault, they’ll fully develop the waiver.) secure.ssa.gov
Bottom line: Ask for the $2,000 administrative tolerance waiver explicitly if your original overpayment is ≤$2,000.
Source: 20 CFR §§ 416.550–416.555; POMS GN 02250 & GN 02250.350, last checked: November 1, 2025. secure.ssa.gov+3Social Security+3ecfr.gov+3
Waiver vs reconsideration vs repayment: which to file (and when)
- Waiver (SSA-632): You agree an overpayment happened but argue don’t collect because you’re without fault and one of the criteria applies. No deadline to request a waiver (even after recovery), but file ASAP to stop collections. Neighborhood Legal Services, Inc.
- Reconsideration (appeal): You dispute that an overpayment occurred or the amount. Deadline: 60 days from when you receive the notice. For SSI, if you request within 60 days, “any payment we are currently making will continue” until a decision. Social Security+1
- Change the repayment rate (SSA-634): If you don’t qualify for waiver or while you wait, ask SSA to reduce the withholding based on your budget; SSI has its own 10% cap framework. (OASDI default rates were adjusted in 2024; SSI rules differ.) SSA
Bottom line: If the facts are wrong, file reconsideration. If the facts are right but you’re without fault and repayment is a hardship or unfair, file waiver. You can do both (appeal first, then waive), and you can also request a lower rate while the waiver is pending. Community Legal Services
How to complete SSA-632 (line-by-line strategy)
Download: Form SSA-632-BK (06-2025). For ≤$2,000, you may not need the form—call SSA. Uploads can be submitted via your online account. Social Security+1
Section 1: Who’s requesting
Fill your identifying info. If a helper completes the form, include relationship and authority.
Section 2: Waiver request
Check you’re asking SSA to waive collection of the stated amount. If the notice amount is $2,000 or less, note the administrative tolerance and ask the office to apply it. secure.ssa.gov
Sections on fault:
Explain, in plain facts and dates, why you’re without fault: you reported wages/marriage/resources on time; you relied on SSA instructions/letters; you couldn’t reasonably know the payment was wrong. Attach copies (receipts, report confirmations, letters). POMS recognizes “misinformation from an official source” and other not-at-fault presumptions. secure.ssa.gov
Income/Expense pages (hardship math):
List ordinary and necessary living expenses: rent/mortgage, utilities, food, transport, medical/prescriptions, insurance, child care, loan minimums. SSA’s “defeat the purpose” test keys off these categories. Attach proof (lease, utility bills, pharmacy printouts, bank statements). Social Security
Equity & good conscience (reliance):
Describe how you relied on SSA’s payment/notice (e.g., signed a lease, paid medical debt) and how repaying would be unfair. Cite dates and documents (lease, receipts, statements). Social Security
Final pages:
Sign, date, and keep copies. If mailing, use certified mail. If in person, ask for a receipt. If online, upload via your account. Social Security
Bottom line: Make the form tell a short, documented story: no fault + hardship/unfairness.
Submitting your waiver (and pausing collections)
Where/how to file
- Online upload (sign in → “Upload documents” → SSA-632 PDF). Social Security
- By phone/office (especially ≤$2,000 cases; SSA can process waivers by phone). Social Security
- By mail to your local office.
Ask for continued payments / stop recovery
- If you’re also filing a reconsideration within 60 days of the notice, SSI payments can continue until a decision. Tell SSA you want continued payments during appeal. Social Security
What happens next
- File review and often a personal conference before denial. Bring originals of your proof; you can bring a representative. Legal Information Institute
Bottom line: File quickly, request continued payments if appealing, and prepare for a short conference if SSA plans to deny.
If SSA denies: your next moves
- Appeal the waiver denial (you’ll get notice of rights). POMS GN 02270.015 covers denial content; you can escalate. secure.ssa.gov
- Lower the rate (SSA-634) so withholding matches your budget.
- Compromise settlement / suspend or terminate collection: In limited cases, SSA can compromise or stop collection if you cannot pay or costs exceed recovery. Social Security
Bottom line: You still have tools—appeal, reduce withholding, or negotiate when full repayment isn’t realistic.
Special cases
Couples (eligible couple) & separation: Equity-and-good-conscience can apply to the spouse who didn’t receive the overpaid amount; couples have rules for household tolerance on $2,000 waivers (each must be ≤$2,000). Social Security+1
Representative payees: Waiver of recovery from a payee doesn’t bar recovery from the overpaid person; “without fault” applies to each party’s role. Social Security
Small resource errors: If an SSI overpayment came solely from countable resources exceeding the limit by $50 or less (and no willful failure), SSA must deem not at fault and waive. secure.ssa.gov
Bottom line: Know the carve-outs—some scenarios unlock automatic or easier waivers.
Checklist: What to include with your SSI waiver (print-friendly)
- Your overpayment notice (all pages).
- Form SSA-632-BK (unless using ≤$2,000 tolerance). Social Security
- Proof you were without fault: reporting receipts (wage reports, change reports), SSA letters, office visit notes, phone logs. secure.ssa.gov
- Income & expense proof (last 2–3 months): lease/rent receipt, utilities, food estimates, transportation, insurance, medical/prescription printouts, bank statements. Tie to SSA’s “ordinary & necessary” list. Social Security
- Reliance evidence (for equity & good conscience): signed lease, big necessary purchases, debt payoff receipts made because of SSA’s payment/notice. Social Security
- If applicable: State supplement amount proof (for the current-recipient shortcut under §416.553(b)). Social Security
- Cover letter (one page) summarizing: No fault + Hardship/Equity and any $2,000 tolerance claim. secure.ssa.gov
Bottom line: Documents win waivers. Match your proofs to SSA’s rule language.
Comparison table: Which option fits your case?
| Option | Use it when… | Deadline | Result if approved | While pending |
|---|---|---|---|---|
| Waiver (SSA-632) | Overpayment exists, but you’re without fault and recovery would defeat purpose or be against equity, or ≤$2,000 tolerance | Any time (no strict deadline) | Debt erased; collections stop/refunds of amounts collected | You can request reduced withholding; if also appealing, ask for continued payments (SSI) Neighborhood Legal Services, Inc.+1 |
| Reconsideration (appeal) | Facts are wrong (amount, period, cause) | 60 days from receipt | Overpayment reduced/removed | SSI payments can continue if appeal filed timely Social Security+1 |
| Repayment rate change (SSA-634) | You owe some or all, but need lower withholding | Any time | Lower monthly withholding | Often granted based on budget; SSI rate caps exist SSA |
Disclaimer
This guide is general information, not legal advice. SSI/SSA rules change. Talk with an accredited representative or attorney about your specific facts.
Sources (high-authority)
- Regulations: 20 CFR §§416.550–416.555 (waiver standards, defeat-purpose, equity, impede administration). Source: SSA/ECFR, last checked November 1, 2025. Social Security+4Social Security+4ecfr.gov+4
- POMS: GN 02250 series; GN 02250.350 (administrative tolerance $2,000, presumption of not-at-fault, often no SSA-632). Source: SSA POMS, last checked November 1, 2025. secure.ssa.gov+1
- Form & process: SSA-632-BK (06-2025) and SSA upload portal. Source: SSA.gov, last checked November 1, 2025. Social Security+1
- Appeals & continued benefits: SSI overpayment & appeals pages (60-day limit; continued payments during appeal). Source: SSA.gov, last checked November 1, 2025. Social Security+1
- Policy context: SSA blog/OIG on overpayment recovery rates (OASDI 10% default in 2024), noting SSI differs. Source: SSA blog/SSA OIG, last checked November 1, 2025. SSA+1
- Advocacy explainers: Empire Justice; Disability Rights CA (expanded “equity & good conscience” examples). Last checked November 1, 2025. Empire Justice Center+1
FAQ
1) Is there a deadline to file an SSI overpayment waiver with SSA-632?
There’s no strict deadline to request a waiver; you can file any time—even after money has been collected. (Appeals/reconsiderations have 60 days.) Neighborhood Legal Services, Inc.
2) What does “without fault” mean on an SSI waiver?
SSA decides you didn’t cause the overpayment based on your reporting, reliance on SSA info, and other POMS criteria (with several not-at-fault presumptions). secure.ssa.gov
3) How do I prove “defeat the purpose” (hardship) for SSI?
Show that repaying would take money needed for ordinary and necessary living expenses; current SSI recipients can meet a shortcut income test. Include bills and statements. Social Security
4) What counts as “against equity and good conscience”?
If you relied on SSA’s notice/payment and changed your position (signed a lease, paid debts) or relinquished a right, SSA can waive recovery as unfair. Social Security
5) Do small SSI overpayments get waived automatically?
Yes—if the original amount is $2,000 or less, SSA generally presumes not at fault and may waive without SSA-632 (no fraud/duplicate check). Ask for the administrative tolerance. secure.ssa.gov
6) Will my SSI stop while my appeal or waiver is pending?
If you file a reconsideration within 60 days, SSI payments you’re currently receiving can continue until a decision. Waiver alone doesn’t guarantee continuation. Social Security
7) What if SSA denies my waiver?
You can appeal the denial, ask to lower the withholding (SSA-634), or explore compromise/suspension options in limited circumstances. secure.ssa.gov+1
8) Can couples both use the $2,000 tolerance?
Each member must individually have an original overpayment of ≤$2,000; otherwise the tolerance doesn’t apply to either spouse. secure.ssa.gov