Over a million recipients could lose up to half of each monthly payment because of past overpayments. The good news? Federal rules give you several ways to fight back before the deadline hits.
For retirees and disabled workers alike, a Social Security check often means the difference between comfort and hardship. Beginning July 24, the Social Security Administration (SSA) will start withholding as much as 50 percent of benefits from roughly 1 million people who still owe money after receiving excess payments. That clock started ticking 90 days after the agency’s April 25 notice.
Why up to half your July Social Security check may disappear
President Donald Trump’s April policy reset restored aggressive clawbacks first proposed in March. Unlike the previous 10 percent cap, the revised rule lets the SSA take half of a beneficiary’s monthly payment until the balance is cleared. The agency is also reviving a separate 15 percent garnishment for 452,000 retirees who are behind on federal student loans. Wondering whether those numbers could grow? Officials say nearly 2 million people closed fiscal 2023 owing some amount to the SSA. Mark these on your calendar:
- July 24: Withholding of up to 50 percent can begin.
- Sept 30 2025: Paper checks end, so make sure your direct‑deposit details are current.
- Monthly earnings cap for non‑blind disability recipients in 2025: $1,620.
Below is a quick reference to the three forms most people will need.
| Official form | Main purpose | When to use it |
|---|---|---|
| SSA‑632BK | Ask the SSA to waive the overpayment entirely | Overpayment not your fault and repayment causes hardship |
| SSA‑561 | Dispute that you were overpaid — or the dollar amount | Evidence shows the agency miscalculated |
| SSA‑634 | Negotiate a lower withholding or longer repayment plan | You accept the debt but need relief |
Take a moment to check which option fits your situation, then gather any pay stubs, bank statements, or medical bills that prove financial strain. After all, the SSA will ask for documentation.
Three legal strategies to cut or erase the looming clawback entirely
First, request a waiver with Form SSA‑632BK; if granted, the debt disappears. Second, file a reconsideration with Form SSA‑561 to challenge the overpayment or its size. Third, submit Form SSA‑634 to trim the withholding rate—some recipients have stretched payments over five years. Need extra help? Local Social Security offices and accredited nonprofit advisers can walk you through the paperwork.
Time is short, but the rulebook is on your side. Review your notice, pick the right form, and send it promptly—certified mail is best—to keep more of the money you count on every month.