This group of people will no longer receive monthly social security payments: check who loses this right
Discover who is at risk of losing monthly Social Security payments in the U.S. and learn how to safeguard your benefits under the latest SSA policies.
In a big development, the Social Security Administration has policies in place that halt monthly payment for some beneficiaries. Principally, such a policy affects those having unresolved legal or financial obligations, which raises concern from people relying on these social benefits to survive.
Who will be in danger of losing their Social Security payments?
The SSA can stop or reduce payments for individuals who fall under specific categories:
- Unpaid Federal Tax Debts: Those beneficiaries with unpaid federal tax debts can face a partial or total garnishment of their Social Security benefits. Under the Federal Payment Levy Program, up to 15% of monthly benefits can be withheld to repay these debts.
- Court-Ordered Obligations: Under certain circumstances, benefits can be withheld for individuals with unpaid child support, alimony, or other court-ordered restitution. State agencies may ask Social Security to pay out benefits to satisfy these kinds of debts.
- Debts to Federal Agencies: Under certain circumstances, such as defaulting on a student loan, overpayment from a government program, or debts owed to a federal entity, Social Security benefits may be reduced. Under the provisions of the Debt Collection Improvement Act of 1996, the Department of the Treasury is empowered to collect such funds by offsetting them against Social Security benefits.
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How does this affect beneficiaries?
For many, the loss or reduction of Social Security benefits may have a strongly felt financial impact. These benefits may include critical expenses such as rent, utilities, food, and medical care for many. The cessation of these payments can send those affected scurrying to find alternative ways to meet their financial responsibilities, possibly placing some in a condition of financial distress.
Legal experts and advocacy groups have pointed out the problems this causes, especially for low-income retirees and disabled people. Most rely entirely on Social Security as their main income source, and when these payments are disrupted, they become very vulnerable.
Provisions for affected beneficiaries
If your Social Security benefits are reduced or stopped, there are steps you can take to get the problem resolved:
- Resolve Tax Obligations: Call the IRS to set up a payment plan or resolve outstanding debts. This may help mitigate the garnishment of benefits.
- Adhere to Court Orders: Collaborate with lawyers in resolving past due child support, alimony, or restitution payments. Courts will consider modification of payments due for those with low incomes.
- Negotiate with Federal Agencies: In case of debt collection, contact the agencies to negotiate with them for payment arrangements. Many federal programs offer pay-as-you-earn schedules.
- Seek Legal Advice: A lawyer can help to clarify your rights and your options if you think your payments were improperly suspended or garnished.
Ways to safeguard your benefits
To avoid future interruptions in Social Security payments, beneficiaries are encouraged to keep up with financial obligations and be aware of SSA regulations. Periodically review your benefits status and take action on any legal or tax issues immediately. You can also seek financial counseling, which may provide you with useful strategies on how to handle debts and prevent garnishments.
This new SSA enforcement policy really showed how critical financial compliance is for beneficiaries, especially those who rely on Social Security to cover basic needs.
*This article was written in Spanish and translated with the help of AI.