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KEY TAKEAWAYS
- Social Security beneficiaries may have their benefits reduced if they have missed child support payments, have unpaid taxes or government debt, or have received an overpayment.
- The Social Security benefits will continue to be offset until the full amount due is paid, but there are some ways to delay or lower the garnishment.
Missing child support payments, unpaid taxes, or debt to the government could prevent you from getting the full amount of your next Social Security check.
Wage garnishment, or when a person’s earnings are withheld, typically occurs when someone owes debt or is not making required payments. Garnishment can occur when a worker has unpaid taxes or fines, or when a borrower defaults on their loan, which typically happens after failing to make payments for several months.
Generally, however, Social Security benefits cannot be garnished by non-federal debt, such as unpaid credit card debt or other personal loans.
Why This Matters
Most Social Security beneficiaries live on a fixed income, which means any interruption to their payments could make it difficult to afford their necessities.
When Can My Benefits Be Garnished?
The government is not allowed to garnish some of your benefits, like Supplemental Security Income. However, the federal government can cut your Social Security retirement and disability benefits under the following circumstances:
- If you owe money for child support, alimony or restitution, your monthly benefits can be withheld.
- If you owe money in taxes, the IRS can garnish up to 15% of your monthly Social Security payments until the tax debt is paid.
- Your benefits can be garnished by up to 15% if you have other non-tax defaulted debt owed to the U.S. government.
- If your Social Security check was more than what it should have been, half of your payments will be withheld until the overpayment is corrected.
Typically, if a Social Security beneficiary has defaulted on their federal student loans, the Treasury Department can withhold up to 15% of their payments. However, in June, the Department of Education announced that it is pausing any future garnishments of Social Security benefits for unpaid student loans.
What To Do If Your Benefits Are Being Garnished
Generally, garnishments will continue until the defaulted debt or missing payments are paid. However, there are ways to lower or delay the garnishments.
Beneficiaries who owe money to the IRS can contact the agency and pay the full balance immediately, sign up for a payment plan, or request an offer in compromise, which allows taxpayers to settle their tax debt for less than the full amount owed. They can also request that the IRS temporarily delay the collection of the owed taxes.
If the garnishment is causing you an “immediate economic hardship,” you can contact the IRS to lift the levy on your benefits. The tax agency will then work with you to establish a payment plan or take steps to pay off the tax debt.
For beneficiaries whose checks are being garnished for any other non-tax government debt, they should contact the federal agency or state to which they owe the money. Contacting the Treasury Department at 800-304-3107 can help you determine who to contact to settle the defaulted debt.
Similarly, beneficiaries whose benefits are reduced due to previous overpayments can repay the total amount that was overpaid or request a waiver if they can’t afford to pay. If there was an error, beneficiaries can request an appeal.
