If You Owe Back Taxes Can You Collect Social Security

If it is more than 34 000.

If you owe back taxes can you collect social security.

Can social security be garnished for state taxes owed. If you acknowledge the fact that you have received social security benefits you were not due but you can t afford to pay the money back then you can file for a waiver of the overpayment. If your filing status is individual and your combined income is between 25 000 and 34 000 you could end up paying taxes on up to 50 of your social security benefit. Likewise social security benefits are exempt from garnishment for most types of debt.

When someone owes back taxes to the internal revenue service it is common for the irs to take some types of government payments automatically such as federal tax refunds to pay down the debt. For others their social security may be their only source of income in retirement. Ignoring your tax debt will put you in the crosshairs for collection actions. If you ignore your tax debt when you become eligible to receive social security payments the irs might come calling.

Instead the ssa withholds a portion of your monthly benefit until the amount of the overpayment is paid in full. Which ever may be the case if you owe back taxes to the irs you may be asking yourself the question can the irs garnish my social security. The irs uses what is called the federal payment levy program fplp. In this instance the ssa does not typically capture your irs refunds.

If you are on social security and owe money to the irs it is important that you understand these limits as well as what your options are. If you owe back taxes to the irs and do not pay the tax owed or arrange to pay on or by the due date for individuals of april 15 then you may be subject to irs collection enforcement. The irs has a legal right to collect taxes that you owe to the government and has multiple ways to collect what you owe.