Can the IRS levy or garnish a Social Security Disability Settlement Check?

Answer 1

Social Security does not allow garnishment of disability benefits by creditors. Any credit card company, business, or individual who has won a judgment against you will never garnish your Social Security disability check.

Social Security will allow garnishment of your Social Security disability benefits for current and past due child support or alimony. And the Internal Revenue Service is allowed to garnish Social Security disability and retirement benefits for delinquent taxes.

Also, in addition to the IRS, other federal agencies may be allowed to garnish Social Security disability benefits.

For instance, if an individual owes student loans that were federally guaranteed their Social Security disability benefit can be garnished.

In theory, any money owed to the federal government can conceivably be garnished from Social Security retirement or disability checks.

If you receive Supplemental Security Income (SSI) disability benefits, however, no creditor can garnish your benefit, not even the Federal Government. Since SSI is a need based disability benefit, it cannot be garnished.

Answer 2

Unfortunately, yes. There are not funds that are exempt from IRS seizure or garnishment for tax arrearages. The IRS does not need a court order to levy a bank account or garnish wages.

Answer 3

Yes but only for IRS debt and child support and only at 15%

Answer 4

Yes, pension and Social Security payments may be garnished by the IRS to satisfy Federal tax levies and judgments. Please see the links below for additional information.