---
kind: "range"
citation: "20 C.F.R. §§ 416.550–416.555"
title: "20"
from: "416.550"
to: "416.555"
count: 6
url: "https://uscodex.org/cfr/20/416.550..416.555"
---

# §416.550. Waiver of adjustment or recovery—when applicable.


Waiver of adjustment or recovery of an overpayment of SSI benefits may be granted when (EXCEPTION: This section does not apply to a sponsor of an alien):

- (a) The overpaid individual was without fault in connection with an overpayment, and
- (b) **Adjustment or recovery of such overpayment would either—**
  - (1) Defeat the purpose of title XVI, or
  - (2) Be against equity and good conscience, or
  - (3) **Impede efficient or effective administration of title XVI due to the small amount involved.**
- (c) We will apply the procedures in this [paragraph (c)](#c) when an individual requests waiver of all or part of a qualifying overpayment.
  - (1) For purposes of this [paragraph (c)](#c), a qualifying overpayment is one that accrued during the pandemic period (see [§ 416.537(c)](/cfr/20/416.537.md?p=c)) because of the actions that we took in response to the COVID-19 national public health emergency, including the suspension of certain of our manual workloads that would have processed actions identifying and stopping certain overpayments.
  - (2) Notwithstanding any other provision of this subpart, we will presume that an individual who requests waiver of a qualifying overpayment is without fault in causing the overpayment (see [§ 416.552](/cfr/20/416.552.md)) unless we determine that the qualifying overpayment made to a beneficiary or a representative payee was the result of fraud or similar fault or involved misuse of benefits by a representative payee (see [§ 416.641](/cfr/20/416.641.md)).
  - (3) If we determine under [paragraph (c)(2)](#c-2) of this section that an individual or a representative payee is without fault in causing a qualifying overpayment, we will also determine that recovery of the qualifying overpayment would be against equity and good conscience. For purposes of this [paragraph (c)(3)](#c-3) only, “against equity and good conscience” is not limited to the meaning used in [§ 416.554](/cfr/20/416.554.md) but means a broad concept of fairness that takes into account all of the facts and circumstances of the case.
  - (4) The provisions of this [paragraph (c)(4)](#c-4) will apply to a qualifying overpayment identified by December 31, 2020.

# §416.551. Waiver of adjustment or recovery—effect of.


Waiver of adjustment or recovery of an overpayment from the overpaid person himself (or, after his death, from his estate) frees him and his eligible spouse from the obligation to repay the amount of the overpayment covered by the waiver. Waiver of adjustment or recovery of an overpayment from anyone other than the overpaid person himself or his estate (e.g., a surviving eligible spouse) does not preclude adjustment or recovery against the overpaid person or his estate.


# §416.552. Waiver of adjustment or recovery—without fault.


Without fault relates only to the situation of the individual seeking relief from adjustment or recovery of an overpayment. The overpaid individual (and any other individual from whom the Social Security Administration seeks to recover the overpayment) is not relieved of liability and is not without fault solely because the Social Security Administration may have been at fault in making the overpayment. Notwithstanding any other provision of this subpart, we will not determine any overpaid individual to be at fault in causing a qualifying overpayment (see [§ 416.550(c)(1)](/cfr/20/416.550.md?p=c-1)) unless we determine that the qualifying overpayment made to an individual or a representative payee during the pandemic period (see [§ 416.537(c)](/cfr/20/416.537.md?p=c)) was the result of fraud or similar fault or involved misuse of benefits by a representative payee (see [§ 416.641](/cfr/20/416.641.md)). In determining whether an individual is without fault, the fault of the overpaid person and the fault of the individual seeking relief under the waiver provision are considered. Whether an individual is without fault depends on all the pertinent circumstances surrounding the overpayment in the particular case. The Social Security Administration considers the individual's understanding of the reporting requirements, the agreement to report events affecting payments, knowledge of the occurrence of events that should have been reported, efforts to comply with the reporting requirements, opportunities to comply with the reporting requirements, understanding of the obligation to return checks which were not due, and ability to comply with the reporting requirements (e.g., age, comprehension, memory, physical and mental condition). In determining whether an individual is without fault based on a consideration of these factors, the Social Security Administration will take into account any physical, mental, educational, or linguistic limitations (including any lack of facility with the English language) the individual may have. Although the finding depends on all of the circumstances in the particular case, an individual will be found to have been at fault in connection with an overpayment when an incorrect payment resulted from one of the following:

- (a) Failure to furnish information which the individual knew or should have known was material;
- (b) An incorrect statement made by the individual which he knew or should have known was incorrect (this includes the individual's furnishing his opinion or conclusion when he was asked for facts), or
- (c) The individual did not return a payment which he knew or could have been expected to know was incorrect.

# §416.553. Waiver of adjustment or recovery—defeat the purpose of the supplemental security income program.


We will waive adjustment or recovery of an overpayment when an individual on whose behalf waiver is being considered is without fault (as defined in [§ 416.552](/cfr/20/416.552.md)) and adjustment or recovery of the overpayment would defeat the purpose of the supplemental security income program.

- (a) **General rule.** We consider adjustment or recovery of an overpayment to defeat the purpose of the supplemental security income (SSI) program if the individual's income and resources are needed for ordinary and necessary living expenses under the criteria set out in [§ 404.508(a)](/cfr/20/404.508.md?p=a) of this chapter
- (b) **Alternative criteria for individuals currently eligible for SSI benefits.** We consider an individual or couple currently eligible for SSI benefits to have met the test in [paragraph (a)](#a) of this section if the individual's or couple's current monthly income (that is, the income upon which the individual's or couple's eligibility for the current month is determined) does not exceed—
  - (1) The applicable Federal monthly benefit rate for the month in which the determination of waiver is made (see [subpart D](/cfr/20/subpartD.md) of this part); plus
  - (2) The $20 monthly general income exclusion described in §§ [416.1112(c)(3)](/cfr/20/416.1112.md?p=c-3) and [416.1124(c)(10)](/cfr/20/416.1124.md?p=c-10); plus
  - (3) The monthly earned income exclusion described in [§ 416.1112(c)(4)](/cfr/20/416.1112.md?p=c-4); plus
  - (4) The applicable State supplementary payment, if any (see [subpart T](/cfr/20/subpartT.md) of this part) for the month in which determination of waiver is made.

# §416.554. Waiver of adjustment or recovery—against equity and good conscience.


We will waive adjustment or recovery of an overpayment when an individual on whose behalf waiver is being considered is without fault (as defined in [§ 416.552](/cfr/20/416.552.md)) and adjustment or recovery would be against equity and good conscience. Adjustment or recovery is considered to be against equity and good conscience if an individual changed his or her position for the worse or relinquished a valuable right because of reliance upon a notice that payment would be made or because of the incorrect payment itself. In addition, adjustment or recovery is considered to be against equity and good conscience for an individual who is a member of an eligible couple that is legally separated and/or living apart for that part of an overpayment not received, but subject to recovery under [§ 416.570](/cfr/20/416.570.md).


# §416.555. Waiver of adjustment or recovery—impede administration.


Waiver of adjustment or recovery is proper when the overpaid person on whose behalf waiver is being considered is without fault, as defined in [§ 416.552](/cfr/20/416.552.md), and adjustment or recovery would impede efficient or effective administration of title XVI due to the small amount involved. The amount of overpayment determined to meet such criteria is measured by the current average administrative cost of handling such overpayment case through such adjustment or recovery processes. In determining whether the criterion is met, the overpaid person's financial circumstances are not considered.