Garnishment
Section 459 of the Social Security Act (42 U.S.C. 659) permits Social Security to withhold current and continuing Social Security payments to enforce your legal obligation to pay child support, alimony, or restitution. By law, we do not make retroactive adjustments.
If you disagree with the garnishment, contact an attorney or representative where the court issued the order, not Social Security.
Levy
Section 1024 of the Tax Payer Relief Act of 1997 (Public Law 105-30) authorizes the Internal Revenue Service (IRS) to levy up to 15% of each Social Security payment for overdue Federal tax debts until the tax debt is paid.
Contact the IRS at 1-800-829-7650 to discuss any appeal rights.
The Department of the Treasury (Treasury) can also withhold Social Security benefits to collect delinquent non-tax debts owed to other federal agencies under the Debt Collection Improvement Act of 1996 (Public Law 104-134). Treasury controls this activity and will contact you if you owe a non-tax debt.
If you have questions about the levy for a non-tax debt, contact Treasury at 1-800-304-3107.
FAQs
Money can't be taken directly from your Social Security benefit (i.e., wage garnishment) to repay your debt.
How much of my Social Security can be garnished? ›
Section 1024 of the Tax Payer Relief Act of 1997 (Public Law 105-30) authorizes the Internal Revenue Service (IRS) to levy up to 15% of each Social Security payment for overdue Federal tax debts until the tax debt is paid. Contact the IRS at 1-800-829-7650 to discuss any appeal rights.
What debts can be taken from Social Security? ›
If you have any unpaid Federal taxes, the Internal Revenue Service can levy your Social Security benefits. Your benefits can also be garnished in order to collect unpaid child support and or alimony. Your benefits may also be garnished in response to Court Ordered Victims Restitution.
How do I protect my Social Security from creditors? ›
The funds will NOT be protected if you receive a check from SSA and then go to the bank and deposit it into an account. The best way to protect your Social Security Benefits from creditors is to keep a separate account, which only receives direct deposits from Social Security.
Can a debt collector take your Social Security? ›
The law sets certain limits on how much debt collectors can garnish your wages and bank accounts. Certain federal benefits, such as social security benefits and veterans' benefits, generally cannot be garnished.
What money cannot be garnished? ›
There are no federal limits to the amount that can be taken in account garnishment. Your state may have laws that are more protective. Some sources of income are considered protected in account garnishment, including: Social Security, and other government benefits or payments.
What is a hardship for Social Security garnishment? ›
(j) Financial hardship. (1) A debtor whose wages are subject to a withholding order may, at any time, request a review by Treasury of the amount garnished, based on materially changed circ*mstances, such as disability, divorce, or catastrophic illness, which result in financial hardship.
Why should seniors not worry about old debts? ›
There are state laws that protect IRA benefits and independent retirement accounts. So, seniors' income is protected by various laws, and if they don't pay their debt, or if they're unable to pay their debt, even if they're sued, it can't be garnished or taken from them.
Can debt collectors take money from your bank account without permission? ›
So, can debt collectors take money from your bank account without permission? No. But a court can give them the permission they need. The FDCPA requires the creditor or their collectors to give you notice of the lawsuit, notice of the hearing dates and times, and allow you to defend yourself.
What happens if you have more than $2000 in the bank on SSI? ›
If the value of your resources that we count is over the allowable limit at the beginning of the month, you cannot receive SSI for that month. If you decide to sell the excess resources for what they are worth, you may receive SSI beginning the month after you sell the excess resources.
Many federal benefit payments are not subject to garnishment in most cases. These payments are known as exempt funds: Social Security benefits.
What states prohibit garnishment? ›
Some states, such as Pennsylvania, North Carolina, South Carolina and Texas, do not allow wage garnishment except for tax, child support, student loan, or court-ordered fines. Other states normally limit the percentage of wage that can be garnished.
Do you lose your Social Security if you go to jail? ›
If you receive Social Security, we'll suspend your benefits if you're convicted of a criminal offense and sentenced to jail or prison for more than 30 continuous days. We can reinstate your benefits starting with the month following the month of your release.
What is the Fair credit Act for seniors? ›
The Fair Credit Reporting Act (FCRA) , 15 U.S.C. § 1681 et seq., governs access to consumer credit report records and promotes accuracy, fairness, and the privacy of personal information assembled by Credit Reporting Agencies (CRAs).
Can a creditor find my new bank account? ›
Creditors need court orders to access your bank account. Without a legal order, your creditor most likely does not have the right to your bank information.
What is the maximum Social Security offset? ›
The maximum reduction in Social Security benefits under the Windfall Elimination Provision is $587 per month if you were age 62 in 2024. If you earned at least 40 Social Security credits through other employment, you should apply for Social Security, even though you may receive a reduced Social Security benefit.
Can the IRS garnish your entire Social Security check? ›
Under the automated Federal Payment Levy Program, the IRS can garnish up to 15 percent of Social Security benefits. For example, if your benefit is $1,000, the IRS can take up to $150. Through a manual levy, the government does not take a set percentage.
How much can Social Security take for overpayment? ›
Any adjustment or recovery of an overpayment for an individual in current payment status is limited in amount in any month to the lesser of (1) the amount of the individual's benefit payment for that month or (2) an amount equal to 10 percent of the individual's total income (countable income plus SSI and State ...