Social Security
Individuals at Risk of Losing Social Security Benefits in February
The Social Security Administration (SSA) plays an essential role in the financial stability of millions of Americans by providing monthly payments.
While most of these payments are designed for retirement benefits, they also cover survivors, spouses, workers with disabilities, and those who qualify for Supplemental Security Income (SSI).
These benefits are generally safeguarded from legal processes, such as execution, levy, attachment, or garnishment. However, there are specific situations where these protections do not apply.
Key Exceptions to Social Security Payment Protections
Legal Obligations: Child Support, Alimony, and Restitution
Under Section 459 of the Social Security Act, the SSA can withhold current and ongoing Social Security benefits to fulfill legal obligations such as child support, alimony, or restitution.
It’s crucial to note that the SSA does not make retroactive adjustments, meaning only ongoing payments are subject to withholding, not past payments.
Tax-Related Issues: Federal Payment Levy Program
Another important exception comes from tax-related matters.
The Taxpayer Relief Act of 1997 empowers the Internal Revenue Service (IRS) to levy up to 15% of a recipient’s Social Security benefits to settle overdue tax debts through the Federal Payment Levy Program (FPLP).
This program ensures that delinquent tax obligations are collected directly from Social Security payments.
Non-Tax Debts: Debt Collection Improvement Act
The Debt Collection Improvement Act of 1996 grants the Department of Treasury the power to collect delinquent non-tax debts owed to other federal agencies, using Social Security benefits.
This includes benefits like retirement, adult survivor benefits, and disability benefits. However, certain types of benefits, such as lump sum death benefits, child benefits, and SSI payments, remain protected and cannot be garnished or levied.
Safeguards for Low-Income Beneficiaries
Despite these exceptions, there are protections in place for low-income individuals. According to the IRS, the FPLP does not apply to those whose Social Security benefits are below certain income thresholds.
These thresholds are determined by the Department of Health and Human Services’ poverty guidelines, ensuring that low-income beneficiaries are not disproportionately burdened by tax-related levies.
How to Handle Disagreements or Appeals
Child Support, Alimony, and Restitution Garnishments
If you disagree with a garnishment related to child support, alimony, or restitution, the SSA recommends contacting an attorney or representative in the jurisdiction where the court order was issued.
It’s important to address these concerns with the relevant legal authority, rather than the SSA itself.
Tax Debts and IRS Levies
For those wishing to challenge an IRS levy, the recommended action is to directly contact the IRS at 1-800-829-7650.
This provides an opportunity to discuss your rights and explore potential resolutions. Additionally, inquiries regarding levies for non-tax debts can be directed to the Treasury at 1-800-304-3107.
Social Security Payment Withholding Exceptions
| Exception Type | Description | Affected Benefits |
|---|---|---|
| Legal Obligations (e.g., child support) | SSA withholds current benefits for legal obligations | Retirement, Disability, Survivor Benefits |
| Tax Debts (IRS Levy) | IRS levies up to 15% for overdue tax obligations | Retirement, Disability, Survivor Benefits |
| Non-Tax Debts (Treasury Debt Collection) | Treasury can collect debts owed to federal agencies | Retirement, Disability, Survivor Benefits |
| Protected Benefits | Certain benefits are not subject to garnishment or levy | SSI, Lump Sum Death Benefits, Child Benefits |
It’s essential for Social Security beneficiaries to understand the circumstances under which their payments may be withheld. Legal obligations, tax-related issues, and non-tax debts can all impact Social Security benefits.
However, certain safeguards ensure that low-income individuals are protected from excessive financial hardship. Staying informed about these rules and knowing how to address disagreements or appeals can help beneficiaries manage these situations effectively.
Being proactive and understanding your rights is key to navigating the complexities of Social Security payment withholding.
FAQ
Can my Social Security payments be garnished for taxes?
Yes, the IRS can levy up to 15% of your Social Security benefits to collect overdue taxes through the Federal Payment Levy Program.
What happens if I owe child support or alimony?
The SSA can withhold your ongoing Social Security payments to meet child support, alimony, or restitution obligations under Section 459 of the Social Security Act.
Are all Social Security benefits protected from garnishment?
No, SSI payments, lump sum death benefits, and benefits paid to children are typically protected and cannot be garnished or levied.
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