Under certain circumstances, Social Security Disability Insurance (SSDI) benefits may be garnished depending on what type of debt is owed, but Supplemental Security Income (SSI) benefits may not be garnished under any circumstance. Because SSI is a needs-based program, it is determined that the recipient needs that income to survive and SSDI benefits are based on a disabled worker’s past income and taxes paid, so it is not considered “needs based.”
Although private institutions like banks and other financial creditors are unable to garnish SSDI benefits, government agencies are allowed to garnish benefits. The most common types of debts that may be garnished include federal income taxes, federal student loans, child support and alimony, defaulted federal home loans and certain civil penalties.
If federal taxes are owed, the Internal Revenue Service (IRS) has the power to levy up to 15 percent of benefits to pay off debt. Other agencies cannot touch the first $750 of monthly benefits.
To learn more about garnishment of SSDI benefits click here.
