Can the IRS Garnish Social Security?

Yes, the IRS can garnish Social Security — it is one of the few creditors that can. Through the Federal Payment Levy Program, the IRS can take up to 15% of your monthly Social Security benefit to collect unpaid taxes. Most ordinary creditors cannot touch federal benefits at all; the IRS plays by different rules.

I have received more phone calls about Social Security garnishments than wage garnishments. The likeliest explanation is that it is an easy levy for the IRS to run, because it is government-to-government.

Is Social Security taxable?

Another common confusion: Social Security is sometimes treated as completely nontaxable. That is only true in some cases. If you have additional income, Social Security can become taxable.

No taxpayer has all of their Social Security taxed, regardless of other income. The amount is either zero, 50 percent, or 85 percent of benefits.

If you have income between $25,000 and $34,000, up to 50 percent of your benefits may be taxable. Above $34,000, up to 85 percent may be taxable.

A real client story

I worked with a client (we will call her Ms. J) who was completely blindsided by an IRS garnishment. She was a 76-year-old widow whose husband had handled the bills and the yearly tax filing for decades. After he passed, she assumed she did not have to file because she was retired and on Social Security.

Years went by. Her savings depleted. She downgraded her rental situation. She had a small pension on top of Social Security. The income from that pension made her Social Security partially taxable, and she did not know it.

The IRS started garnishing 15 percent of her Social Security check. She did not even know there was a balance. There was no notice of the assessment, no notice of the garnishment, no notice of anything she could find.

How we resolved it

We pulled the account transcripts to confirm exactly what the IRS thought she owed. We filed the missing returns to correct the assessment. We documented her financial situation, demonstrating that the garnishment was creating real hardship. We requested a release of the levy and proposed Currently Not Collectible status given her fixed income.

The IRS agreed. The garnishment stopped. The remaining debt was paused while she lived on her benefits.

If this is you, call us

If the IRS is garnishing your Social Security, you have options. We file Power of Attorney and request the levy release as part of the resolution. (833) 839-9287.