You are currently viewing Can the IRS garnish my federal benefits?

Can the IRS garnish my federal benefits?

Can the IRS garnish my federal benefits?

The best way to stay away from unpleasant penalties like wage garnishment is by paying off your tax debts immediately or agreeing with your creditor on a payment plan. Sometimes, life and the happenings in it make it quite difficult to pay certain debts off immediately and completely, however, there are other options that are available to you to explore.

If you find yourself in a situation like this, you need the help of a qualified tax professional. Call us now and let us help you.

Wage garnishment simply explained, is when you owe someone a certain amount of money and the person or business entity takes you to court and wins the case. In the ruling, the court might grant them permission to garnish your paycheck, meaning that a percentage f your salary will go towards settling your debt until it is completely resolved. If the court grants your creditor this permission, your creditor will proceed to garnish your wages.

Unfortunately, when you owe federal entities like the IRS, they do not require permission from the court before they can garnish your wages. When you fail to pay your income taxes, the IRS can choose to come for your paycheck and garnish it in order to recover the money you owe to them.

In the realization of the power of the IRS  to garnish your paycheck without needing a court-sanctioned go-ahead, you may be curious as to what they are and are not allowed to touch and which forms of income may be garnished. We are here to explain that to you properly.

Federal benefits are social security benefits provided by the government to people who are disabled, retirees who qualify, or their spouses, relatives, and children. It is an income that is provided with the aim of assisting people in need.

If you currently receive federal benefits from social security, you may want to know if the IRS is allowed to garnish that too, as in most cases, your creditor is allowed to garnish the bank account for your wages, and your other assets.

It is valid to want to know if your federal benefits can be garnished too. In the next paragraphs, we’ll be answering this question by explaining to you in detail.

Can the IRS garnish my Federal Paycheck?

Generally speaking, the IRS has an automatic levy of your social security at 15%. If you are deemed to be unable to pay, the IRS puts your account in a certain category called “Currently not collectible” status, and the levy of your social security benefits can be stopped.

The IRS will always give you a notice of their intention to garnish your paycheck. Whether it is your wages, social security, or bank account.

The IRS can not take more than 15 percent of your federal benefits, but if you owe debts like alimony and child support, up to 65 percent of your paycheck can be garnished.

Some social security benefits are completely exempt from garnishment. They include:

– The child support you receive

– Majority of pensions

– Compensation for death or injury

– Foreign Service retirement

– Financial assistance from FEMA

– Civil service and Federal Retirement and Disability

– Service Member pay


If you get notified of an impending wage garnishment, you have the ability to stop it by immediately paying back everything you owe or going into an installment agreement with the IRS.

If you’re worried about your social security benefits being garnished, call us today. We’re professionals with a wealth of experience in issues like this and we will look into your case, answer your questions, bring clarity, and help you make the best decision that will impact you positively in the long run.

About us

We are a tax relief firm dedicated to giving you the best results regarding resolving your tax debts. Our team of qualified professionals is available round the clock to provide you with the assistance you need. Contact us now at 888-585-8629 or 617-430-4674 or send us an email at [email protected].

For more information, email [email protected]

Internet subscribers, users, and online readers are advised not to act upon this information without seeking the service of a professional accountant. Any U.S. federal tax advice contained in this website is not intended to be used for the purpose of avoiding penalties, of any kind, under U.S. federal tax laws.