Millions of children get Social Security, usually because a parent retired, became disabled or died. The money normally goes to a parent or guardian, called a representative payee, who manages it for the child.
But what happens when Social Security pays too much while that person is a child? According to a new audit from Social Security’s own watchdog, the agency hasn’t always handled that correctly. In some cases, overpayments were left sitting on people’s records long after they should have been cleared or moved to someone else.
The report, from the Social Security Administration’s Office of the Inspector General (OIG), estimates that more than $280 million in overpayments tied to child benefits weren’t handled according to SSA’s own rules. If you got benefits as a kid, or you’re a parent who managed them, here’s what the auditors found and what you can check.
First, a quick explainer: who owes the money?
When a child is overpaid, the parent or guardian who received the money is usually the one mainly responsible for paying it back. The child is only “contingently liable”, a backup, in case the payee can’t be made to repay.
SSA’s rules say that once a child’s benefits stop and the child no longer meets the conditions for that backup liability, the overpayment should be taken off the child’s record and moved to the right person’s record, typically the payee’s.
What the auditors found
The OIG looked at two groups.
Group 1: overpayments left on children’s records. Among people whose child benefits were suspended or ended between March 2018 and September 2025, auditors found 349 people where SSA hadn’t cleared or moved the debt as policy required. Together they carried about $1.9 million in overpayments. Projected across the wider group, the OIG estimates at least 6,980 people with about $38.5 million in overpayments that weren’t resolved properly.
Group 2: people flagged for tax refund seizure. SSA can ask the Treasury to take money from a person’s federal tax refund to recover an overpayment. The auditors sampled 175 of the 249,227 people selected for this. SSA got 121 of them (69%) right. The other 54 (31%) had overpayments that weren’t handled according to policy. Projected across everyone selected, that’s an estimated $242.6 million for about 76,904 people.
| Finding | Sample | OIG projection |
|---|---|---|
| Overpayments not cleared or moved after child benefits ended | 349 people, ~$1.9m | 6,980+ people, ~$38.5m |
| Tax refund offset cases not handled per policy | 54 of 175 sampled | ~76,904 people, ~$242.6m |
What went wrong
- No alert system. SSA didn’t have a process that flagged every record needing action, so staff simply weren’t told.
- Alerts ignored. In some cases employees got alerts but didn’t act on them, and the auditors couldn’t tell why. Some were still pending as of June 2026.
- No attempt to withhold from benefits. In 48 of the 54 tax-offset cases, SSA hadn’t tried to recover the money by withholding from ongoing benefits first.
- Wrong records. For six people, records weren’t corrected, leaving them listed as owing money that was wrong or had already been paid back.
Not every mistake hurts the person involved
It’s worth being clear about this. Some of the errors mean people were left owing money they shouldn’t, which is the part that matters most to families. Others are really about SSA not collecting money the right way, such as skipping benefit withholding and going straight to a tax refund seizure. Either way, the auditors said the agency wasn’t following its own policy.
What SSA says it will do
The OIG made five recommendations, and SSA agreed to all of them. They include:
- fixing the overpayments for the 403 people identified in the audit
- reviewing the estimated 6,600 people who no longer meet the backup-liability rules, and correcting their records where needed
- adding controls that alert staff to move a debt off a child’s record when benefits stop
- adding alerts so benefit withholding is started properly for people selected for tax refund offset
- finding out why staff weren’t updating records, and fixing it
SSA has to send the OIG a corrective action plan within 60 days of the report, which is dated September 30, 2026.
What you can do
- Check your record. If you got benefits as a child, log in to my Social Security and look for any overpayment notices or balances you don’t recognize.
- Read any overpayment letter closely. It should say whose record the debt is on and why. If it relates to money paid to a parent or guardian on your behalf, ask SSA whether you’re actually the liable person.
- Ask for a reconsideration if you think the overpayment is wrong. Generally you have 60 days from the notice to appeal.
- Ask for a waiver if you weren’t at fault and repaying would cause hardship. SSA can waive overpayments in those cases.
- Lost a tax refund? If the Treasury took your refund for a Social Security overpayment you think you don’t owe, contact SSA right away and ask them to review it.
If you’re a parent or guardian who manages a child’s benefits, report changes quickly, such as a child leaving your care or starting work. That’s one of the simplest ways to avoid overpayments in the first place.
Sources: SSA Office of the Inspector General: Overpayments to Children (audit 052502) and SSA OIG audit reports.
Jackson is a dedicated USA news writer, who covers important topics such as Social Security payment schedules, COLA increases, IRS tax refunds, stimulus payment announcements, Medicare eligibility, retirement benefits, and changes to state driving laws. His goal is to provide clear, informative, and easy-to-follow articles that help retirees, seniors, taxpayers, and American families stay informed.