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

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

Yahoo21 hours 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.
Social Security in Florida: How dependent is Florida on Social Security? Study ranks state, how much people make
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.
Worried about Social Security cuts? 3 things to do now if you're already retired
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.
Social Security changes: Age for full Social Security benefits goes up this year. How old do you have to be?
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
Solve the daily Crossword
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Why NIKE (NKE) Could Be a Comeback Story Among the Dogs of the Dow
Why NIKE (NKE) Could Be a Comeback Story Among the Dogs of the Dow

Yahoo

time13 minutes ago

  • Yahoo

Why NIKE (NKE) Could Be a Comeback Story Among the Dogs of the Dow

NIKE, Inc. (NYSE:NKE) is included among the 11 Dogs of the Dow Dividend Stocks to Buy Now. A close-up of a hand holding a casual sneaker with the Nike logo on it. The world's biggest footwear company stated on Thursday that existing tariffs might push its costs up by around $1 billion. This announcement followed the release of its fiscal fourth-quarter 2025 results, which managed to surpass estimates. In fiscal Q4 2025, NIKE, Inc. (NYSE:NKE) reported revenue of $11.1 billion, which fell by nearly 12% from the same period last year. However, the revenue surpassed analysts' estimates by $373.5 million. The fourth quarter marked the period with the most significant financial impact from the company's 'Win Now' initiatives, and management expects these pressures to ease going forward. Leadership expressed confidence in the firm's ability to steer through the current unpredictable environment by maintaining focus on controllable factors and effectively carrying out the 'Win Now' strategy. NIKE, Inc. (NYSE:NKE)'s cash position also remained stable. The company ended the year with cash and equivalents and short-term investments of $9.2 billion. During the year, it returned $2.3 billion to shareholders through dividends. The company offers a quarterly dividend of $0.40 per share and has a dividend yield of 2.10%, as of July 26. It has raised its payouts for 23 consecutive years. While we acknowledge the potential of NKE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Dogs of the Dow: Why Procter & Gamble (PG) is a Pillar of Dividend Stability
Dogs of the Dow: Why Procter & Gamble (PG) is a Pillar of Dividend Stability

Yahoo

time13 minutes ago

  • Yahoo

Dogs of the Dow: Why Procter & Gamble (PG) is a Pillar of Dividend Stability

The Procter & Gamble Company (NYSE:PG) is included among the 11 Dogs of the Dow Dividend Stocks to Buy Now. A happy couple viewing the products of this household and personal product company in a mass merchandiser store. The Procter & Gamble Company (NYSE:PG) owns several leading consumer brands like Pampers and Tide— products that are considered essentials for many households. While there's always a possibility that consumers could opt for cheaper, generic alternatives, recent sales figures don't indicate any major shift in buying behavior that would pose a serious threat to the business. The Procter & Gamble Company (NYSE:PG) is considered one of the most reliable dividend stocks in the market. Its stability comes from a wide range of top-tier brands in areas like beauty, health, grooming, home care, and family care. Thanks to strong customer loyalty and an efficient global supply chain, the company regularly posts profit margins that outperform many competitors. The Procter & Gamble Company (NYSE:PG)'s long-standing financial strength is further proven by its impressive 69 consecutive years of dividend increases, which is one of the longest growth streaks among publicly traded companies. On July 8, the company declared a quarterly dividend of $1.0568 per share, in line with its previous dividend. With a dividend yield of 2.67% as of July 26, PG is among the best dogs of the Dow. While we acknowledge the potential of PG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None.

Why The Home Depot (HD) Remains a Reliable Dividend Pick in the Dogs of the Dow
Why The Home Depot (HD) Remains a Reliable Dividend Pick in the Dogs of the Dow

Yahoo

time13 minutes ago

  • Yahoo

Why The Home Depot (HD) Remains a Reliable Dividend Pick in the Dogs of the Dow

The Home Depot, Inc. (NYSE:HD) is included among the 11 Dogs of the Dow Dividend Stocks to Buy Now. An insurance broker discussing policy options with a homeowner. The company is facing challenges expanding its business amid a tough economic climate marked by elevated interest rates and growing caution among consumers when it comes to major purchases. Still, several positive trends could work in the company's favor. Housing inventory in the US remains tight compared to demand, and the average home is aging. In addition, homeowners have access to trillions of dollars in home equity that could be used for remodeling and improvements. As economic conditions stabilize or improve, Home Depot is likely to benefit from stronger demand. In the first quarter of 2025, The Home Depot, Inc. (NYSE:HD) reported revenue of $39.86 billion, up 9.44% from the same period last year. Comparable sales declined by 0.3%, while US comparable sales saw a slight increase of 0.2%. The company noted that fluctuations in foreign exchange rates had a negative effect, reducing overall comparable sales by about 70 basis points. The Home Depot, Inc. (NYSE:HD) reported an operating cash flow of $4.3 billion and ended the quarter with $1.4 billion in cash and cash equivalents. The company is a reliable dividend payer with 16 consecutive years of dividend growth under its belt. Currently, it offers a quarterly dividend of $2.30 per share for a dividend yield of 2.45%, as of July 26. While we acknowledge the potential of HD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store