Can the IRS Garnish Your Social Security?
The Internal Revenue Service (IRS) has the authority to take various actions to collect unpaid taxes, including garnishing wages and bank accounts. However, the question often arises whether the IRS can garnish your Social Security benefits. The answer is both yes and no, depending on the circumstances.
Understanding Garnishment of Social Security Benefits
In general, the IRS cannot directly garnish your Social Security benefits to pay off unpaid taxes. This is because Social Security benefits are considered exempt from garnishment under federal law. This exemption is in place to ensure that individuals receiving Social Security benefits have a stable income to cover their basic needs.
Exceptions to the Exemption
While Social Security benefits are generally exempt from garnishment, there are certain exceptions where the IRS can take action:
1.
Child Support or Alimony
If you owe child support or alimony, the IRS can garnish your Social Security benefits to satisfy these obligations. The garnishment will be limited to 50% of your benefits, unless you have more than one dependent, in which case it may be up to 65%.
2.
Student Loans
The IRS can garnish your Social Security benefits to collect unpaid student loans. The garnishment limit is 15% of your benefits, unless you are currently serving in active duty in the military, in which case the limit is 10%.
3.
Unpaid Federal Taxes
If you owe unpaid federal taxes, the IRS can garnish your Social Security benefits. However, the garnishment will be limited to 15% of your benefits, unless you have more than one dependent, in which case it may be up to 65%.
Preventing Garnishment
To prevent garnishment of your Social Security benefits, it is essential to address any tax issues promptly. Here are some steps you can take:
1.
File Your Taxes on Time
Filing your taxes on time can help you avoid accumulating tax debt that could lead to garnishment.
2.
Set Up a Payment Plan
If you owe taxes, consider setting up a payment plan with the IRS to avoid garnishment.
3.
Seek Professional Help
If you are struggling to manage your tax debt, consider seeking the assistance of a tax professional or an accountant to help you navigate the process.
In conclusion, while the IRS cannot directly garnish your Social Security benefits, there are exceptions where garnishment may occur. It is crucial to address any tax issues promptly and take steps to prevent garnishment of your Social Security benefits.
