The Short Answer: Yes, With Limits
The IRS can levy Social Security benefits if you owe back taxes.
However, the garnishment is capped at 15% of your monthly benefit under the Federal Payment Levy Program (FPLP).
This means the IRS cannot take your entire check — but losing even part of a fixed income can cause serious hardship.
Disability benefits are treated differently.
Disability Benefits: SSDI vs. SSI
Not all disability benefits are treated the same.
- Social Security Disability Insurance (SSDI): These benefits can be levied under the same rules as retirement benefits. The IRS can withhold 15% through the FPLP.
- Supplemental Security Income (SSI): These benefits are considered public assistance (needs-based) and are fully exempt from IRS levy. The IRS cannot touch SSI payments.
This distinction is often misunderstood, and many taxpayers are relieved to learn that SSI is protected.
How the Levy Works
Here’s what happens if the IRS places a levy on your Social Security or disability benefits:
- The IRS sends you a Final Notice of Intent to Levy.
- You have 30 days to appeal or make payment arrangements.
- If no action is taken, the Treasury Offset Program begins deducting 15% of each benefit payment automatically.
The levy continues until your debt is paid in full, an arrangement is reached, or the levy is released due to hardship.
Hardship Exceptions and Protections
Not all Social Security and disability income is treated equally:
- SSI Benefits: 100% protected from IRS levy.
- SSDI and Retirement Benefits: Subject to the 15% levy, but you can request relief if the garnishment causes financial hardship.
- Exempt Portions: Medicare premiums and other withholdings are excluded from the levy calculation.
If losing 15% of your check means you can’t afford basic necessities, you may qualify for Currently Not Collectible (CNC) status, which suspends collection temporarily.
Comparison: Wages vs. Social Security vs. SSI
| Income Type | Levy Rules | Protected Amount | Notes |
|---|---|---|---|
| Wages | IRS can garnish most wages until debt is paid | Amount exempt based on filing status & dependents (IRS Pub. 1494) | Can exceed 50% of a paycheck |
| Social Security (Retirement/SSDI) | IRS can levy through FPLP | Up to 15% of monthly benefit | Medicare premiums excluded from levy calculation |
| SSI (Needs-Based Disability) | Cannot be levied | 100% protected | Completely off-limits under federal law |
When the IRS Must Release a Levy
The IRS is required by law to release a levy if it:
- Creates an economic hardship that prevents you from meeting basic needs.
- Was issued in error.
- Applies after the collection period expired.
- Is replaced by a an action you take to Stop or Prevent a Levy
How to Stop or Prevent a Levy
If you receive a notice of levy on your Social Security or disability income, you still have options:
- Installment Agreement: Set up monthly payments instead of letting the IRS garnish benefits.
- Offer in Compromise: Settle your tax debt for less if you qualify.
- Hardship Relief: Request CNC status by demonstrating that the levy prevents you from paying essential living expenses.
- Appeal: File a Collection Due Process appeal within 30 days of receiving the final notice.
Acting quickly is critical — once the levy starts, it can be difficult to reverse.
How This Connects to Other IRS Seizures
Social Security and disability levies are part of the IRS’s broader collection tools. For some taxpayers, the bigger fear is losing property.
We addressed that in our earlier article Can the IRS Take My House or Car if I Owe Back Taxes?.
For others, the concern is income garnishment. Just like with paychecks, the IRS can intercept benefits.
If you haven’t yet, see our guide Can the IRS Garnish My Wages or Paycheck? for a breakdown of how wage levies work.
By understanding these different types of collection actions, you’ll know where you stand and what protections are available.
Bottom Line
Yes, the IRS can garnish Social Security and some disability benefits, but it cannot take everything. A 15% cap applies, and needs-based SSI benefits are completely off limits.
If you act quickly, you may be able to stop or reduce a levy by arranging payments or proving financial hardship.
The key is not to ignore IRS notices. Whether it’s wages, property, or Social Security benefits, early action gives you the most protection.