Can Social Security be garnished?

Can Social Security be garnished? Only by a short list. The Social Security Administration says it can withhold payments for child support, alimony or restitution and the IRS can levy for overdue federal tax. Card companies, hospitals, landlords and private lenders are not on that list.

How much the IRS can take

The IRS can levy up to 15% of each Social Security payment. Through the Federal Payment Levy Program, the payment is reduced by 15% or by the tax owed, whichever is less. On $1,000 a month, that is up to $150.

If that 15% leaves you short on rent or food, ask for a hardship release. The IRS releases levies that cause immediate economic hardship. See IRS garnishment.

Can Social Security be garnished from your bank account?

A private creditor usually tries the bank, not the check. Your bank must review the last two months of deposits and two months’ worth of benefits stays available, per the CFPB. On $1,000 a month, that is $2,000. The rule is in 31 CFR Part 212.

What to do if it happens

1. Call us with your benefit award letter and the last two months of statements.
2. Find out which order froze the account and who sent it.
3. File an exemption claim with the court for any benefits above the protected amount.
4. For an IRS levy, ask for a hardship release with a list of your expenses.

More on frozen bank accounts and exempt income.