5 exceptions to protecting your Social Security
We’re all aware of the fact that the Social Security benefits are protected from assignment, levy and garnishment. However, there are 5 cases wherein you cannot protect the benefits.
1. Unpaid federal taxes: If you’ve not paid the federal taxes in time, as per Section 6334(c) of the IRS Code, your benefits can be levied for collecting the taxes.
2. Income tax for current year: Beneficiaries can have a percentage of their benefits withheld and paid to the IRS in order to fulfill their income tax liability for the current year.
3. Payment of non-tax debt: As per the debt Collection Act of 1996, your benefits can be withheld and paid to a federal agency to which you owe the non-tax debt.
4. Child Support/alimony: The Social security benefits can be garnished to provide child support or alimony obligations.
5. Overdue tax debt: The IRS has the right to collect overdue federal tax debt of beneficiaries by levying up to 15% of each monthly payment until the debt is repaid. This is in accordance with the Tax Payer Relief Act of 1997.
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