Man's Honest Mistake Results In Social Security Slashing More Than Half His Monthly Payment
A Tennessee man is breathing a bit easier after he says an honest mistake cut his income in half. That's because he was penalized by the Social Security Administration (SSA) over "overpayment" issues when he took on some extra work to help keep his family afloat after his wife lost her job.
That resulted in the SSA cutting his benefits in half, shocking the family and costing them more than $1,000 a month.
A Man Was Faced With a $46,000 Overpayment Bill
The man spoke with local news station News Channel 5 about his struggles, sharing how he had taken on extra hours at work after his wife lost her job. Jerry Dye, who receives disability benefits due to diabetic neuropathy, says he took on extra hours at his cashier job to help the family get back on track, not thinking of how it could impact his Social Security benefits.
However, at the start of the year, he says he received a $46,000 overpayment bill due to his increased income, which reduced his benefits from $2,093 a month to just $945. "I did what I thought I had to do to survive," Dye explained of his decision to take on extra hours, noting that his family ended up falling behind on their rent and even faced an eviction notice.
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The Administration Eventually Reached Out to Dye to Change the Withholdings
Just one day after his story hit the airwaves, Dye says that he was contacted by the SSA about the withholdings, which were then dropped to just $100 a month. "I think at this point we have done what we have set out to do with getting the word out, and I think it played such a huge part in where I'm at right now," Dye said of the sudden change to his situation.
Dye's Situation Isn't Unique
While overpayments are a notoriously common systemic issue across the country, it can hit especially hard in cases like Dye's, where his financial situation changed abruptly.
When that's the case, the SSA says it's the recipient's job to update them so that they can be aware of the changes. However, in instances like this, where Dye may not have known he was changing the amount he was eligible to collect, the SSA will work to recover the money through various methods, including sending a bill with a 30-day payment notice.
If you've received a large overpayment like Dye's, and you can't get the money to the SSA in time, the administration will automatically withhold a portion of the payment. "If you don't pay us back within 30 days of the date on your notice, we'll automatically withhold 50 percent of your benefit or 10 percent of your SSI payment each month until the overpayment is repaid," the website says.
Of course, this can create a hardship for families, so it's important to stay in communication with the SSA if you find yourself in a similar situation, so you can work toward a resolution that works for both you and the administration.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
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This story was originally published May 28, 2026 at 10:13 AM.