For a waiver, being without fault isn't enough on its own. Usually you also have to show that repaying would defeat the purpose of your benefits: that you need substantially all of your current income for ordinary and necessary living expenses (20 CFR 404.508; 416.553). SSA checks this in a set order, and the first two steps don't look at your budget at all.
Step 1: needs-based help in the household
SSA deems repayment to defeat the purpose if you, your spouse or a dependent currently gets any of these (POMS GN 02250.110B.1):
- Supplemental Security Income (SSI)
- Supplemental Nutrition Assistance Program (SNAP)
- Temporary Assistance for Needy Families (TANF)
- A VA pension based on need
- Medicare Part D Extra Help
On SSA-632-BK this is question 6. Check it, skip to page 9, and send proof of TANF, SNAP or the VA pension that is no more than a year old.
Step 2: income at or below 150% of the poverty guideline
If your household's income is at or below 150% of the HHS poverty guideline and your resources are within the limits in step 3, SSA also deems repayment to defeat the purpose, without reviewing your expenses (POMS GN 02250.110B.2). SSA multiplies your monthly household income by 12 and compares it with the current guideline for your household size. The 2026 figures:
| Household | 48 states and D.C. | Alaska | Hawaii |
|---|---|---|---|
| 1 person | $23,940 a year | $29,925 | $27,540 |
| 2 people | $32,460 a year | $40,575 | $37,335 |
| 3 people | $40,980 a year | $51,225 | $47,130 |
| 4 people | $49,500 a year | $61,875 | $56,925 |
| 5 people | $58,020 a year | $72,525 | $66,720 |
| 6 people | $66,540 a year | $83,175 | $76,515 |
150% of the 2026 HHS poverty guidelines. HHS updates them each January, and SSA uses the current ones.
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Step 3: the budget test
If neither shortcut applies, SSA compares your household's money in and money out (POMS GN 02250.100). Repayment defeats the purpose only if both are true:
- Income is no more than $250 a month above expenses. The $250 margin is for unbudgeted costs. If more than $250 is left over, SSA expects you can repay something each month.
- Resources are within the limit: $6,000 for one person, $10,000 with one household family member, plus $1,200 for each additional member ($12,400 for a household of four).
Household family members are your spouse and dependents (people you can claim on your tax return), even one away at school. Their income, expenses and resources count with yours.
What counts as income
Government benefits (Social Security, railroad, workers' compensation, unemployment), net wages and self-employment income, child support, alimony, pensions, interest, dividends, rent, and payments from IRAs and other retirement plans. Money a non-dependent pays toward the household counts too.
What counts as expenses
Rent or mortgage, utilities, taxes, food, household supplies, personal care, clothing, transportation, insurance, out-of-pocket medical costs, court-ordered payments, tuition, support of people you're legally responsible for, and ordinary extras like pets, a phone, cable, internet or entertainment. SSA's manual says the individual sets their own standard of living, and staff shouldn't question it. A large one-time bill, such as a medical bill, is spread over 12 months. No proof of expenses is required.
What SSA leaves out of resources
Your home, two vehicles (more if needed for someone using a wheelchair), household goods and clothes, items of sentimental value, real estate you co-own and can't sell, a burial plot or prepaid burial contract, insurance policies, ABLE accounts, CDs that haven't matured, trusts you can't get at, IRAs and other retirement plans, and anything that produces income you need or can't be cashed without a penalty (POMS GN 02250.100E.1).
Two worked examples
- A woman living alone gets $1,640 in Social Security and a $398 pension: $2,038 a month, or $24,456 a year. That's above 150% of the guideline for one person ($23,940), so step 2 doesn't apply. Her expenses are $1,900 and she has $2,500 in the bank. $138 is left over each month, under the $250 margin, and her savings are under $6,000: repayment defeats the purpose.
- A couple has $4,500 a month and $4,450 in expenses, but $26,000 in savings and a CD. They are over the $10,000 limit for two, so repayment does not defeat the purpose, even though their budget is tight. (This mirrors an example in POMS GN 02250.100H.)
Permission to check your bank records
To approve a waiver on these grounds, SSA needs your permission to check your financial accounts; it's on page 8 of SSA-632-BK. If you refuse, SSA can't approve the waiver under this test (POMS GN 02250.100E). Papers about income and resources should be no more than 3 months old.
If you don't pass, a waiver may still be possible when collecting would be against equity and good conscience, for example because you relied on the payments and are now worse off; that ground ignores income entirely. Otherwise, you can ask for a lower rate. Free help is available from legal aid (LawHelp.org) and from Social Security. This guide is general information, not legal advice.