Did You Know Your Social Security Payments Can Be Garnished? - The Motley Fool
Even though private creditors cannot touch your Social Security payments, the Federal Government can if you owe it money. You can also have your Social Security payments garnished if you are in arrears on child support or alimony.
The type of debt you owe determines how much can be withheld from your payments. Garnishment can’t exceed a certain amount of your monthly benefit.
Social Security will be required to withhold money for the following debts. If you owe Federal taxes or default on a federal student loan, your payment can be garnished by 15%. For example, if your Social Security benefit is $2,000, you will have $300 per month withheld until the debt is paid in full.
If you are in arrears in child support or alimony, the withholding can be quite substantial. You could face a 50% to 65% withholding rate.
Dana George has written an article about when Social Security can garnish your payments. To read the full article, click here …
If you are in arrears in any of these situations, it is recommended that you try to get a payment arrangement made before you start your Social Security benefits. Social Security cannot help you if it is notified to withhold money for any of these reasons. You must contact the agency that has it withheld.
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