Overpaid by Social Security? You Might Be Allowed to Keep It If You Do This.
The Motley Fool
by newsfeedback@fool.com (Kailey Hagen, CFP)February 20, 2026
AI-Generated Deep Dive Summary
Getting an extra payment from Social Security might seem like a windfall—until you realize it’s an error and the government plans to recover the money. If you fail to repay the excess amount, you could face significant consequences, such as losing up to 50% of your future Social Security checks until the debt is settled. However, there’s a potential solution: you can request permission from the Social Security Administration (SSA) to keep the extra funds if certain conditions are met.
The SSA may allow you to retain the overpayment under specific circumstances, such as if it would cause financial hardship or if the error was not your fault. This option avoids the harsh penalties of having a portion of your future benefits withheld. To explore this possibility, you must formally request permission from the SSA and provide supporting documentation to demonstrate why keeping the money is justified.
This situation highlights the importance of understanding your rights regarding Social Security payments. For individuals interested in personal finance, it’s crucial to know how errors or discrepancies in government payments can impact your financial stability. By taking proactive steps, such as requesting a waiver of the overpayment recovery, you can protect your financial interests and avoid unnecessary stress.
For those facing a Social Security overpayment, consulting with a financial advisor or legal expert is highly recommended. They can help navigate the SSA’s process, ensure compliance with regulations, and advocate for your best interests. This underscores the importance of being informed and proactive when dealing with government payments that could significantly affect your financial well-being.
In summary, while receiving an unexpected Social Security payment might seem like a positive development, it’s essential to address any overpayment promptly and explore all available options, such as requesting permission to keep the extra funds. This not only protects your future benefits but also reinforces the importance of understanding your rights and responsibilities regarding government payments.
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Originally published on The Motley Fool on 2/20/2026