For millions of Americans, Social Security is more than just a monthly check — it’s a lifeline. So when tax debt starts piling up, one of the first questions retirees and those approaching retirement age ask is: can the IRS actually touch my Social Security benefits?
The short answer is yes. But the full picture is more nuanced than that — and understanding how it works could make a significant difference in how you handle your tax situation.
Social Security Is Not Off-Limits to the IRS
Many people assume that Social Security benefits are protected from government collection the same way certain types of income are protected from private creditors. That assumption is wrong when it comes to the IRS.
Under the Federal Payment Levy Program (FPLP), the IRS has the authority to levy — meaning legally intercept — a portion of your Social Security benefits if you have an unpaid federal tax debt. This program allows the IRS to work directly with the Social Security Administration to redirect part of your benefit payment before it ever reaches your bank account.
You won’t receive a warning the month it happens. One day your deposit is the amount you expected, and the next month it’s significantly less. That’s how jarring this can be for people who depend on that income to pay rent, utilities, and groceries.
How Much Can the IRS Take?
Under the FPLP, the IRS can levy up to 15% of your monthly Social Security benefit. That might not sound like much, but for someone living on $1,400 a month, losing $210 every month can quickly make it impossible to cover basic expenses.
It’s also worth noting that this 15% cap applies specifically to Social Security retirement, survivors, and disability insurance (SSDI) benefits collected through the FPLP. In more serious cases — where the IRS manually issues a levy rather than going through the automated program — the amount they can take may be higher.
Supplemental Security Income (SSI), which is a needs-based benefit for low-income individuals, is generally exempt from IRS levies. But regular Social Security retirement and SSDI benefits are not protected.
How Does the IRS Get to This Point?
Just like with any other levy, the IRS doesn’t intercept your Social Security without going through a process first. Before the FPLP kicks in, you should have received multiple notices from the IRS about your unpaid balance, including a final notice of intent to levy and information about your right to a hearing.
The problem is that many people — especially older adults — either don’t recognize these notices for what they are, don’t understand their rights, or simply hope the situation will resolve itself. By the time the levy actually hits, the window to easily stop it has often already passed.
Can You Stop an IRS Levy on Your Social Security?
Yes — and the sooner you act, the better. Here are the main ways to address it:
Request a Collection Due Process (CDP) Hearing. If you haven’t yet received a levy or you act quickly after receiving the final notice, you can request a CDP hearing. This legally pauses any levy action while your case is being reviewed and gives you the opportunity to propose a resolution.
Set Up a Payment Plan. If you enter into an installment agreement with the IRS, they will typically release the levy on your Social Security benefits. You’ll pay your tax debt in manageable monthly installments, and your full benefit will be restored.
Apply for Currently Not Collectible Status. If your income — including your Social Security — barely covers your necessary living expenses, you may qualify for Currently Not Collectible (CNC) status. This tells the IRS that you genuinely cannot afford to pay right now, and collection activity including the levy is suspended.
Submit an Offer in Compromise. If you owe significantly more than you could ever realistically pay, an Offer in Compromise may allow you to settle your debt for less than the full amount. If accepted, any active levies are released.
Demonstrate Economic Hardship. Even if none of the above apply, you can request that the IRS release the levy by showing that it is creating a significant economic hardship — meaning it’s preventing you from meeting basic living expenses. The IRS is required to consider this under federal law.
What About Spousal Benefits and Survivor Benefits?
If you receive Social Security based on a spouse’s work record — either as a spouse or as a survivor — the FPLP can still apply if the debt is yours. However, if your spouse has a tax debt and you file separately, your own benefits are generally not at risk for their debt.
This is an area where the details really matter, and getting professional advice specific to your situation is important.
A Special Note for Those Still Working
If you’re still working and receiving Social Security at the same time, keep in mind that the IRS can pursue levies on both your wages and your Social Security benefits simultaneously. That double hit can be financially devastating and is exactly the kind of situation where having a tax professional in your corner becomes critical.
The Bottom Line
Retirement should be a time of financial stability, not stress over IRS collection calls and shrinking benefit checks. The truth is that while the IRS can take your Social Security benefits, you have real options to stop it — but you need to act before the situation gets out of hand.
If you’ve received IRS notices about a tax balance, or if you’ve already noticed a reduction in your Social Security payment, don’t wait. At Brightside Tax Relief, we specialize in helping individuals — including retirees on fixed incomes — find workable solutions to IRS debt. We’ll review your situation, explain your options clearly, and fight to protect as much of your income as possible.
Call us today at 844-638-0800 or visit brightsidetaxrelief.com. Relief is closer than you think.
The information in this article is for general educational purposes only and does not constitute legal or tax advice. Every tax situation is unique. Contact a qualified tax professional for guidance specific to your circumstances.
