Garnishment is the tool of last resort for creditors who want to collect money owed to them. The general rule is that Social Security income cannot be garnished. However, though Section 207 of the Social Security Act bar garnishment, it does provide for exceptions to this rule.
Child Support and Alimony
If the person receiving Social Security benefits owes back child support or alimony to an ex-spouse, wages can be garnished until the person is current. This exception is found in Section 459 of the Social Security Act.
Back Taxes
If you owe the federal government back taxes whether income or another type, Section 6334 of the Internal Revenue Code allows for Social Security benefits to be garnished to collect those overdue taxes. Up to 15 percent of your monthly benefit can be garnished to pay the debt un the Tax Payer Relief Act of 1997.
Voluntary Garnishment
If you want to keep current on your income taxes, you can voluntarily elect to have your Social Security benefits garnished. Section 3402 (P) of the Internal Revenue Code allows you to select a percentage of your benefits that will be withheld for taxes during the current tax year. This is similar to an individual paying quarterly estimated taxes.
Federal Debt
Other than taxes, if you owe other federal agencies money, your Social Security benefits can be garnished under the Debt Collection Act of 1996. In these instances, the Social Security Administration will directly transfer the garnishment to the agency requesting it.
Other Creditors
If creditors other than those mentioned previously attempt to garnish your Social Security check, you can stop them. Tell them the garnishment would violate Section 207 of the Social Security Act. The act states, "The right of any person to any future payment under this title shall not be transferable or assignable, at law or in equity, and none of the moneys paid or payable or rights existing under this title shall be subject to execution, levy, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law." These exceptions also only apply to Social Security benefits. If the beneficiary is receiving Supplemental Security Income, these payments cannot be garnished at all.
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