The Social Security Administration (SSA) distributes payments monthly to millions of Americans. These disbursements primarily serve retired individuals, but also extend to survivors and spouses of beneficiaries.
Additionally, payments are made to disabled workers and those with limited income through Supplemental Security Income (SSI).
While these benefits are generally protected from legal actions such as levy, garnishment, attachment, or bankruptcy, there are exceptions where payments can be withheld.
The SSA may withhold benefits to enforce legal obligations like child support, alimony, or restitution, as well as for unpaid tax debts.
When Can Social Security Benefits Be Withheld?
The Social Security Administration is authorized to withhold Social Security benefits under specific circumstances. The key legal grounds for withholding benefits include:
1. Legal Obligations for Child Support, Alimony, or Restitution
According to Section 459 of the Social Security Act, the SSA is permitted to withhold current and continuing Social Security payments to satisfy a beneficiary’s obligation for child support, alimony, or restitution.
However, these deductions are only applicable to future payments, not retroactive ones. The SSA states clearly: “By law, we do not make retroactive adjustments.”
2. Delinquent Tax Debt Collection
The Taxpayer Relief Act of 1997 (Section 1024) grants the Internal Revenue Service (IRS) the authority to seize 15% of Social Security benefits to recover unpaid taxes. This is done through the Federal Payment Levy Program (FPLP).
The U.S. Department of Treasury can also collect non-tax debts owed to federal agencies under the Debt Collection Improvement Act of 1996. This includes retirement, adult survivor benefits, and disability benefits.However, certain types of benefits are excluded from garnishment:
- Lump-sum death benefits
- Benefits paid to children
- Supplemental Security Income (SSI) payments
3. Income Thresholds for Garnishment
The IRS excludes some individuals from garnishment under the FPLP. If a beneficiary’s income falls at or below specific poverty guidelines set by the Department of Health and Human Services, they may be exempt from garnishment for delinquent tax debt.
Exceptions: Which Benefits Cannot Be Withheld?
There are distinct exceptions where Social Security payments cannot be used to settle debts. These include:
- Lump-sum death benefits: Paid once to survivors following the death of a beneficiary.
- Children’s benefits: Payments made directly to the children of the beneficiary.
- Supplemental Security Income (SSI): A program designed to assist those with very limited income, which is protected from garnishment.
Additionally, the IRS’s FPLP does not allow garnishment if the beneficiary’s income is deemed low enough according to federal poverty guidelines.
What to Do If You Disagree with Garnishment?
If you believe that your Social Security payments have been garnished incorrectly or you wish to contest a garnishment order, it is crucial to take the following steps:
- Disagreeing with Garnishment for Child Support, Alimony, or Restitution
- Contact an attorney or representative connected to the court that issued the order. The SSA will not handle appeals or disputes about these garnishments.
- Appealing an IRS Levy
- To contest an IRS levy for delinquent taxes, contact the IRS at 1-800-829-7650. The IRS can provide guidance on your rights in this matter.
- Appealing for Non-Tax Debt Garnishment
- If you are being garnished for a non-tax debt, contact the Treasury Department at 1-800-304-3107 for further assistance and clarification.
Types of Benefits and Garnishment Exemptions
| Benefit Type | Can Be Garnished | Exempt from Garnishment |
|---|---|---|
| Retirement Benefits | Yes | No |
| Adult Survivor Benefits | Yes | No |
| Disability Benefits | Yes | No |
| Lump-Sum Death Benefits | No | Yes |
| Children’s Benefits | No | Yes |
| Supplemental Security Income (SSI) | No | Yes |
Understanding when and why Social Security payments may be withheld is essential for beneficiaries who are concerned about their financial obligations. While most Social Security benefits are protected, certain circumstances—such as delinquent taxes or family support obligations—can lead to garnishment.
If you find yourself in a situation where your payments are being withheld, it’s important to know your rights and the steps to take to resolve the issue. Always consult the relevant agencies or legal professionals to ensure your benefits are protected under the law.
FAQs
Can the SSA withhold my Social Security payments for unpaid child support?
Yes, the SSA can withhold current Social Security payments to enforce child support, alimony, or restitution orders.
What types of Social Security benefits are protected from garnishment?
SSI payments, children’s benefits, and lump-sum death benefits are exempt from garnishment.
Can the IRS seize my Social Security benefits for unpaid taxes?
Yes, the IRS can take 15% of Social Security benefits to pay delinquent taxes under the Federal Payment Levy Program.
