Will my IRS tax debt stop my Social Security payments from coming through?

Yes, the IRS can and will take a portion of your Social Security benefits through the Federal Payment Levy Program if you have unpaid tax debt. However, they won't take your entire benefit - there's a limit. Currently they can take up to 15% of your monthly Social Security payment. They can't block you from receiving benefits entirely. You should look into setting up an installment agreement with the IRS before you start receiving benefits. You might qualify for an Offer in Compromise depending on your financial situation. The IRS has several payment options for taxpayers who can't pay in full.

my cousin had this happen to him. irs took like 12% of his check every month until he got on a payment plan. soon as he made arrangement with them they stopped garnishing

The previous comments are correct about the 15% limit, but there's more you should know. The IRS actually has to send you several notices before they can levy your Social Security benefits. You should have received a CP504 notice (Final Notice of Intent to Levy) and then a CP90/CP91 notice which gives you 30 days to appeal and request a Collection Due Process hearing. If you're experiencing financial hardship, you can request Currently Not Collectible status. With your income limited to just Social Security, you might qualify. Also look into the Taxpayer Advocate Service - they can help mediate between you and the IRS if you're facing financial hardship. Finally, be aware that if you're receiving SSDI or SSI, those have different protection levels than regular retirement benefits.

I HAD THE SAME PROBLEM!!!! The IRS took 15% of my SS check EVERY MONTH for almost 2 years!!! They don't care if you can't pay your bills or buy food. I tried calling them over and over but could never get thru to a real person. Just recordings that don't help at all. The whole system is RIGGED against us seniors!!

I went through this last year after retiring with about $22,000 in back taxes. After trying for weeks to reach someone at the IRS, I discovered a service called Claimyr that helped me get through to a human at the IRS in about 20 minutes. Their site is claimyr.com and they have a video showing how it works: https://youtu.be/Z-BRbJw3puU Once I actually talked to someone, I was able to set up a payment plan based on my income and they immediately stopped the garnishment. They even reduced my monthly payment when I explained my situation. The key is actually getting through to a real person who can help.

Something that nobody mentioned yet is that the IRS has a special program for people over 65 who are only receiving Social Security. If your only income is going to be SS, you can apply for a hardship status that stops collections completely. My mom had about $9,000 in tax debt when she retired and they put her account in Currently Not Collectible status. They review it every year but as long as her income hasn't increased, they leave it alone. The debt doesn't go away, but they stop trying to collect it.

One more thing to consider - if you haven't actually filed yet, you might want to think about waiting until you resolve the tax issue. If you wait until your Full Retirement Age (66-67 depending on your birth year) instead of taking benefits at 62, your monthly payment will be about 30% higher. That could offset the 15% the IRS might take. Also, the statute of limitations on tax debt is generally 10 years from assessment date. If your debt is already several years old, it might make sense to determine when it will expire.

have u filed ur SS application yet? if not u should do that first then deal with irs after. u cant loose benefits u havent started getting yet

Update: I used that Claimyr service someone mentioned and actually got through to the IRS yesterday! The agent was surprisingly helpful and set me up on a minimal payment plan ($75/month) based on my expected income. She said as long as I keep making the payments, they won't levy my Social Security at all. Such a relief! Now I can go ahead and file for my benefits without worrying. Thanks everyone for your help!

That's fantastic news! So glad you were able to get through and work out a reasonable payment plan. $75/month is definitely manageable and much better than having 15% automatically taken from your Social Security. This is a great example of why it's worth the effort to actually speak with someone at the IRS rather than just accepting the default garnishment. Your success story will hopefully help other people in similar situations know that there are options available. Enjoy your retirement benefits when they start coming in!