Goodbye to social security payments? These are the people who will no longer be able to access their benefits in February
Social Security payments are generally exempt from garnishment, levy and such, but there are some exceptions. Here’s when your benefits could be tapped.
The Social Security Administration sends out payments each month to millions of Americans. The majority of these are in the form of retirement benefits but also survivors and spouses of beneficiaries receive monthly disbursements. As well as disabled workers and those with limited resources through Supplemental Security Income (SSI).
These benefits are generally “exempt from execution, levy, attachment, garnishment, or other legal process, or from the operation of any bankruptcy or insolvency law,” states the SSA, but there are exceptions. Certain benefits can be withheld due to a beneficiary’s legal obligation to pay child support, alimony, or restitution and to pay a delinquent tax debt.
When Social Security benefits can be withheld and which ones
The SSA is allowed to withhold “current and continuing Social Security payments” to enforce a beneficiary’s legal obligation to pay child support, alimony, or restitution under Section 459 of the Social Security Act. “By law, we do not make retroactive adjustments,” says the SSA.
Section 1024 of the Tax Payer Relief Act of 1997 grants the Internal Revenue Service the ability to levy 15% of benefits to pay delinquent tax debt through the Federal Payment Levy Program (FPLP). Additionally, “the Department of Treasury can collect delinquent non-tax debts owed to other federal agencies under the Debt Collection Improvement Act of 1996.”
The agencies can tap retirement, adult survivor benefits, and disability benefits for these purposes. However, lump sum death benefits, benefits paid to children and Supplemental Security Income (SSI) payments cannot be levied or garnished.
Additionally, the IRS says that “the FPLP excludes certain delinquent taxpayers who receive social security payments if their income falls at or below certain established levels, based on the Department of Health and Human Services poverty guidelines.”
“If you disagree with the garnishment [to pay child support, alimony, or restitution], contact an attorney or representative where the court issued the order, not Social Security,” advises the SSA. If you wish to appeal an IRS levy you should contact the tax agency at 1-800-829-7650 to discuss any rights you may have. You can have your questions answered about any levy for a non-tax debt by contacting Treasury at 1-800-304-3107.
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