The Three Ways Your Social Security Disability Benefits Can Be Garnished Depending on Who You Owe
Many Americans rely on their Social Security Disability benefits and believe that it’s untouchable! That’s not true. It is possible that a portion of your Social Security Disability benefits can be garnished or seized by the Federal government.
What Are The Three Ways My Social Security Disability Benefits Can Be Garnished?
Only the United States government can garnish a part of your Social Security Disability benefits. Private creditors like banks or credit card companies, can’t touch your Social Security benefits. However, if you have following types of debt, you could be eligible for garnishment:
1. Federal Income Tax
The IRS, according to the Federal Payment Levy Program, can subject your benefits to a 15% levy towards your Federal Income tax regardless of how much your Social Security Benefits are. Even low-income individuals below the poverty level can be subject to an IRS levy for back taxes.
2. Federal Student Loans
Your Social Security Disability check can be subject to a 15% levy until your student loan is paid off. However, the garnishment must leave you with at least $750 a month in income. We have a sister company ”
3. Child Support and Alimony
The National Court Ordered Garnish System does allow for the garnishment of your Social Security benefits if you’re delinquent on either child support or alimony. The garnishment is based on either the maximum reduction as outlined by the State where you live or the maximum allowed under the Consumer Credit Protection Act (CPPA) whichever is less.
Up to half of your benefits can be seized, depending on your circumstance, the court can order up to 60% if you’re not supporting another child or spouse.
If the original court order is more than 12 weeks in arrears, up to 65% of your benefits can be garnished.
What’s The Smartest Thing I Can Do Before Your Wages Are Garnished?
The smartest thing you can do is to speak directly with the agency involved and work out a payment program. The absolute worst thing to do is to do nothing!