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.
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.
Dana George has written an article about when Social Security can garnish your payments. To read the full article, clickhere …
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.