If you collect Social Security in retirement, some of your payments are subject to the same garnishment rules that apply to other types of income. This means your benefits can be withheld to enforce your legal obligation to pay child support, alimony or restitution -- but not if those benefits are through the Supplemental Security Income (SSI) program.
If you or someone you know plans on claiming SSI benefits, you should keep the following key information in mind.
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No, SSI Payments Cannot Be Garnished
Unlike regular Social Security payments, SSI payments cannot be levied or garnished, according to the Social Security Administration (SSA). This rule applies even if you have unpaid federal income taxes.
As the Consumer Finance Protection Bureau noted, Social Security and Social Security Disability Insurance (SSDI) benefits can sometimes be garnished to pay certain government debts, such as back taxes or federal student loans, and debts for child or spousal support. However, SSI benefits are protected from garnishment -- even to pay a government debt or child or spousal support.
The SSI program is overseen by the SSA and provides a monthly benefit to adults and children with a disability or blindness and resources below certain financial limits. SSI payments are also made to seniors 65 and older who meet the financial qualifications even if they're not disabled. You might be eligible for SSI benefits even if you already receive Social Security Disability Insurance or retirement benefits.
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But, Your Other Benefits Can Be
Although SSI benefits can't be garnished, that's not the case with other types of Social Security payments. As previously reported by GOBankingRates, the SSA can garnish current and continuing monthly benefits. You can't appeal to Social Security to challenge a garnishment, either. For that, you'll need to contact an attorney or representative in the jurisdiction where the court issued the order.
In addition to garnishing your benefits for child support, alimony or restitution, the U.S. Department of the Treasury can withhold Social Security benefits to collect overdue federal tax debts. The Treasury Department can use either a Notice of Levy or the Federal Payment Levy Program to collect overdue federal taxes. This allows the department to withhold up to 15% of your monthly Social Security benefits until you repay the debt.