Will Social Security garnish retirement benefits for $60K IRS tax debt at age 70?

yep they sure can take it. my cousin had tax debt and they took 15% of his SS check every month. sorry to be the bearer of bad news but thats how the system works. govt gives with one hand and takes with the other.

The Federal Payment Levy Program (FPLP) allows the IRS to garnish up to 15% of your Social Security benefits for tax debt. This is automatic if you have unpaid federal taxes and haven't made arrangements to pay them. However, there are options to consider before your benefits begin: 1. Set up an installment agreement with the IRS *before* your benefits start. This could potentially reduce the amount they take. 2. Apply for an Offer in Compromise if you qualify - this lets you settle for less than you owe. 3. Request Currently Not Collectible status if paying would create financial hardship. 4. Look into whether you qualify for the Fresh Start program. I recommend contacting the IRS immediately to discuss your options. Don't wait until September when your benefits begin.

my uncle tried ignoring his tax dbt and they took his house!! not just ss checks.

When I had IRS problems I couldn't get through to anyone on the phone for WEEKS. It was impossible!!! Finally I found this service called Claimyr that got me connected to an actual IRS agent in under 5 minutes. Seriously saved me so much frustration. They have a video showing how it works at https://youtu.be/Z-BRbJw3puU and their website is claimyr.com Once I got through, the agent helped me set up a payment plan that worked for my situation. With tax debt as large as yours, you definitely need to talk to someone directly instead of hoping for the best.

There's a lot of confusion here, so let me clarify a few important points about Social Security and tax debt: 1. Yes, the IRS can take up to 15% of your monthly Social Security benefit through the Federal Payment Levy Program (FPLP) for unpaid federal taxes. 2. This is NOT the same as regular garnishment rules that protect Social Security from most creditors. 3. If you're experiencing financial hardship, you may qualify for a hardship exemption that stops the levy. 4. The IRS must send you multiple notices before they begin levying your benefits. 5. Setting up an installment agreement or Offer in Compromise BEFORE the levy begins can prevent it entirely. At 70, you'll be receiving your maximum possible benefit amount, which is good planning. But you absolutely need to address this tax situation before September. The IRS is generally willing to work with taxpayers who proactively contact them.

My sister works for SSA and she says they see this ALL THE TIME. The system is designed to make sure the govt gets their money before you do. Its totally unfair that they can take money meant for seniors to live on!!!!

Has anyone considered that the IRS debt might be eligible for the 10-year statute of limitations? If some of that $60K is from tax years more than 10 years ago, those portions might be uncollectible now. Worth looking into!

just wondering does SSI get garnished too? asking for a friend

One aspect that hasn't been mentioned is that tax debt can also affect your Medicare premiums. If you're enrolling in Medicare at the same time as starting Social Security at 70, be aware that unpaid tax debt can sometimes trigger issues with your Medicare enrollment if the IRS has filed liens. Additionally, if your payment plan with the IRS requires substantial monthly payments, this could impact which Medicare supplemental plans you can afford. I recommend speaking with both the IRS and a Medicare counselor (SHIP programs offer free Medicare counseling in every state) to understand how these systems might interact in your specific situation.

I went through something similar a few years ago, though my debt was smaller (about $25K). Here's what I learned from experience: 1. The IRS will send you several notices before they start taking from your Social Security - you won't wake up one day to find your check reduced without warning. 2. When I finally called them (after months of procrastinating like you), they were actually willing to work with me. I set up a payment plan for $150/month, which prevented any garnishment of my benefits. 3. The key thing is to contact them BEFORE your benefits start in September. Once the levy begins, it's much harder to stop or reduce. 4. Ask specifically about "Currently Not Collectible" status - if your only income will be Social Security and a small pension, you might qualify. This essentially puts your case on hold if paying would create financial hardship. Don't make the same mistake I did by waiting and hoping it would go away. The stress of dealing with it is actually much worse than the phone call itself. You've made a smart decision waiting until 70 for maximum benefits - now protect that decision by handling the tax situation proactively.