4 Debts That Can Be Taken Out Of Your Social Security Check

It's important for retirees to understand their Social Security benefits, given that it's often their main or only source of income. For this reason, discovering that the Internal Revenue Service (IRS) can sometimes garnish Social Security benefits can be upsetting. According to the Social Security Administration (SSA), the agency is in fact required to withhold a percentage of the benefits upon court orders. When that happens, questions about the garnishment need to be directed to the relevant court rather than to the SSA. 

But there's some good news. Medical providers, credit card companies, and other private debt creditors can't garnish funds. Plus, courts may order garnishments in a few select scenarios. These include overdue federal taxes, student loans in arrears, child support and alimony obligations, and benefit overpayments. 

Also, the amounts subject to garnishments are limited. The Social Security Act (42 U.S.C. 407) provides legal protections to help ensure that people receiving these funds can still meet basic living needs. That said, the baseline amount protected from seizure is pretty small — just $750 monthly (about 42.5% below the federal poverty level for a single person). As far as the bank accounts into which they're deposited, Consumer Financial Protection Bureau (CFPB) notes that two months' worth of directly deposited Social Security funds are protected. People receiving paper checks that they then deposit into the bank, though, don't have those protections. Now, here's a deeper look at the four scenarios when the Social Security benefits may be garnished. 

When someone doesn't pay their taxes on time, a court may ultimately issue a garnishment order. According to the Taxpayer Relief Act of 1997, up to 15% of a benefit payment can be seized until the debt is fully paid. How much will actually be taken, though, varies by situation. The benefit recipient can dispute the bill, ask for a delay in payment, or get an offer in compromise from the IRS. 

The IRS offers guidance on how to avoid reaching this point. Whenever possible, the agency advises, keep federal tax payments current. When that can't happen, pay part of the amount owed. Then, for the remainder of what's owed, apply for a payment plan online. Typically, you would qualify for this online approach and an installment-based "Simple" payment plan if you owe less than $50,000, including interest and penalties, and have filed the returns as required. More than 90% of individual taxpayers (whether they're SSA recipients or not) would qualify for this repayment route. Depending on how you set up the payments, the setup fees for a long-term plan range from $22 to $178, although low-income individuals get a substantial discount. Plan revisions may cost $10. If you owe more than $50,000 but less than $100,000, you can set up a short-term, no-fees payment plan; you'll need to pay the outstanding balance within 180 days. 

As noted by the Consumer Financial Protection Bureau (CFPB), in 2025, collections on student loans in arrears resumed post-COVID-19. This resumption impacted nearly 6 million borrowers, including 452,000 who were at least 62 years old, many of whom are likely receiving Social Security checks. The number of people in this age group with student loan debt increased by 59% from 2017 to 2023. Meanwhile, the number of Social Security recipients experiencing garnishments went up by more than 3,000% in fewer than two decades. Between 2001 and 2019, Social Security garnishment by the Department of Education increased from $16.2 million to $429.7 million. 

The physical well-being of many benefit recipients who have their Social Security checks garnished due to defaulted student loans may be in peril, as they struggle to afford the costs of medical care. A significant portion of recipients affected by these seizures might qualify for relief or even debt cancellation, but many aren't able to apply for it due to physical and cognitive barriers that emerge with old age. Moreover, 87% of Social Security recipients with student loans have benefits that are 225% or more below the federal poverty level, so they are already facing hardship.

Upon a court order, Social Security can seize benefits, per Section 659 of the Social Security Act (42 U.S.C. 659, via the Legal Information Institute), for child support, alimony, or other forms of restitution. However, the process isn't quite that simple. Using child support as an example of how this works, these seizures involve interactions between the state that started the proceedings and the applicable federal rules. Specific amounts that can be garnished are overseen by the Consumer Credit Protection Act (CCPA). To a set context, for garnishment purposes, Social Security benefits are considered earnings, with disposable income defined as funds remaining after Medicare premiums and any other required deductions are taken out. Up to 60% of this disposable income could be seized for child support if the person is supporting a spouse or children. If that person is supporting yet another spouse or children, the amount subject to garnishment is 50%. If child support is more than 12 weeks in arrears, another 5% could be withheld.

CFPB provides an important distinction between Supplemental Security Income (SSI) and Social Security benefits when it comes to child support, alimony, and even government debt paybacks. SSI recipients are granted enhanced garnishment protections that prevent funds seizures from taking place. SSI pays benefits to people who have little to no income, little or no resources, and a disability, are blind, or are at least 65 years old. 

In 2025, SSA paid out $1.6 trillion to nearly 69 million recipients. The complexity of the payment system means that, sometimes, recipients get more money than they should. When that happens, law dictates that SSA must recover those overpayments or otherwise reduce benefits to recoup them. If the SSA informs a recipient about an overpayment, they need to pay it back within 30 days or appeal the decision within that time frame. They can request SSA to not collect the overpayment if they don't feel that the situation was their fault, or if they don't have the funds to pay it back. If someone requests a repayment waiver, SSA reviews the request to see if the person actually owes the money and also investigates their ability to return the sum. If the SSA determines that the person must pay the funds back, the agency notes that it can create a flexible plan for repayment, with amounts as small as $10 monthly or 10%, whichever is greater. To request a payment plan, the SSA created form SSA-634; note that this form requires the sharing of significant amounts of personal financial information: household income, assets, expenses, anticipation of future funds, and so forth.

AARP reported on Office of the Inspector General's figures that show the SSA collected nearly $5 billion in overpayments during 2023, with $23 billion still unpaid. In a congressional hearing, SSA Commissioner Martin O'Malley said that the agency would now provide more leeway in the timelines of repayments.