Some Social Security recipients could see 50% cut starting in August, here's why

Yahoo

5 days ago

Your Social Security check next month might be smaller. By a lot.
That's because on July 24 at the earliest, the Social Security Administration (SSA) will start taking more money back from people who have gotten too much money from them in the past.
So, if you got your check on July 23 this week you shouldn't have seen a difference yet, but the change will be in effect for the Supplemental Security Income (SSI) payment scheduled for Aug. 1 and Social Security checks issued after that.
Previously, if the SSA, which pays monthly benefits to nearly 69 million retired workers, survivors of deceased workers and workers with disabilities, overpaid a beneficiary for some reason — usually because benefits were calculated incorrectly or because a beneficiary failed to update a change in marital status, income, or disability status — the agency would start withholding 10% of their checks moving forward to put toward repaying that debt.
Starting in late July, that percentage went up to 50%, meaning if you have received an overpayment your checks could be cut in half until the money is repaid.
There's no public figure on how many recipients have been overpaid, but the SSA tried to reclaim overpayments from about 2 million people in the fiscal year that ended September 2023, according to KFF and Cox Media Group, based on data acquired in a Freedom of Information Act request. According to AARP, most of the overpayments were to beneficiaries of Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).
Some people may have seen their benefits go up. That's because the Social Security Fairness Act started for public sector workers such as firefighters, police officers, teachers, and other critical public servants whose benefits were reduced in the past. As of July 7, the SSA said it has processed more than 3.1 million payments, totaling over $17 billion, to those entitled to the retroactive payment adjustments.
Here's what to know.
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August Social Security payment schedule
The Social Security Administration's yearly distribution schedules for 2025 and 2026 are available online so that you can check the calendar for budgeting purposes.
Social Security typically pays benefits on Wednesdays, with the first wave of payments going out the second Wednesday of the month and the rest of the payments on the subsequent Wednesdays, depending on your birthdate.
Social Security recipients who began getting benefits before May 1997 are paid on the 3rd of the month. The same goes for recipients who also get SSI payments.
Regular Social Security retirement benefits for the month of July will be sent out on the SSA's usual schedule:
Wednesday, Aug, 13: Birth dates between the first and 10th of the month.
Wednesday, Aug, 20: Birth dates between the 11th and 20th of the month.
Wednesday, Aug, 27: Birth dates between the 21st and 31st of the month.
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What is SSI?
Supplemental Security Income is a benefit payment for those with limited income or resources aged 65 or older, who are blind, or have a qualifying disability. Children with a qualifying disability can also get SSI, according to the SSA's website.
Adults who earn more than $2,019 from work monthly typically do not qualify for SSI.
There will be two SSI payments in August, one on Aug. 1 and another on Aug. 29, but none in September.
SSI payment schedule for August, rest of 2025
Here's a look at the payment schedule for the rest of 2025:
Friday, Aug. 1, 2025 (Check for August 2025)
Friday, Aug. 30, 2025 (Check for September 2025)
Wednesday, Oct. 1, 2025 (Check for October 2025)
Friday, Oct. 31, 2025 (Check for November 2025)
Monday, Dec. 1, 2025 (Check for December 2025)
Wednesday, Dec. 31, 2025 (Check for January 2026)
Why did the overpayment percentage change?
The Biden administration reduced the previous overpayment recovery rate of 100% and capped it at 10% to allow recipients more time to pay back their debt without dropping below the income they needed to survive.
Under President Donald Trump and his administration's efforts to reduce waste, the overpayment clawback was initially restored to 100%. The change applied to new overpayments only, the withholding rate for beneficiaries with overpayments before March 27 was not due to change.
However, after a public outcry, in April the percentage was changed to 50% for all overpayments, past and future, as a compromise.
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How can I avoid having my Social Security checks garnished?
If you know you've been overpaid, paying back the extra money if you still have it will prevent your future checks from being affected.
You can also contact the SSA to request a lower recovery rate or even to have it waived if losing half your payments would create financial hardships, especially if the mistake wasn't your fault.
Moving forward, keep an eye on your checks for anything unusual and be sure to promptly update your account with changes in your marital status, income, disability status or any other factors that could affect your eligibility.
How many people in Florida receive Social Security benefits?
Florida had more than 5 million people claiming Social Security benefits as of December 2023, according to the AARP. That included more than 3.9 million retirees, over 478,000 disabled workers, more than 401,000 spouses or survivors and nearly 240,000 children.
Nearly one in five Florida retirees, family members, veterans and others receive Social Security benefits, according to the AARP.
This article originally appeared on Florida Times-Union: Social Security benefits may be slashed in August for overpayments
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