00:00Another Withholding for Retirees
00:02How much can the IRS withhold from your Social Security payment if you owe them taxes?
00:08There s another significant reason your monthly check could be smaller,
00:11owing back taxes to the federal government.
00:14While many retirees might associate reductions in their Social Security benefits
00:18with factors like taking payments before their full retirement,
00:22age or earning too much while working, here's what you need to know.
00:26Even if you default on a loan, while they might be able to claim a portion of your personal assets,
00:31like funds in a savings account, your Social Security benefits themselves typically remain safe from them.
00:38If you owe any back taxes to the IRS, the government has the authority to intervene,
00:42especially those who might have recently stopped working
00:45and are now receiving benefits to ensure they pay any back taxes owed to the government.
00:51Staying vigilant about your tax obligations can prevent this type of reduction
00:55in your Social Security benefits later on.
00:58The specific amount they can withhold is up to 15% of your monthly Social Security payment.
01:04Private creditors vs. the federal government
01:06It s important to understand that private creditors,
01:10such as credit card companies or mortgage lenders,
01:14generally cannot access any part of your federal benefits,
01:17including your Social Security payments.
01:19The IRS is different.
01:22However, this protection does not apply when the creditor is the federal government itself.
01:28The amount of withholding the IRS can garnish your Social Security checks to pay off the debt,
01:33preventing the reduction.
01:35While this is untypically an issue for most people
01:38who have left the workforce and are enjoying retirement,
01:42it's crucial for anyone.
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