Social Security operates several different programs for people with disabilities. The programs have identical standards for medical eligibility, but different standards for financial eligibility. Retired Survivors and Disability Insurance (DIB) is based upon workers’ earnings history and FICA taxes. On the other hand, the Supplemental Security Income (SSI) program (which covers children, those with low-incomes, and those with insufficient work histories to qualify for DIB) is a needs-based program intended to provide minimal sustenance to keep disabled persons from becoming destitute. SSI payments are not considered by most programs to be “wages.”
DIB payments are funded by the FICA taxes that are paid by employees and their employers. The amount that you receive in DIB is directly tied to the amount that you paid into the system. DIB payments are intended to substitute for the earnings that the employee would have received if they had not become disabled. Because DIB payments are considered to be a replacement for wages, DIB payments can be garnished to repay other federal programs. This includes:
- IRS levies for past-due taxes (up to 15% of benefits)
- Child support or alimony obligations. The maximum amount that be garnished for child support depends on the state where you live.
- Valid garnishment for court-ordered victim restitution.
- Federal student loans
Also, at the state level, DIB payments can be garnished to pay child support payments.
In general, private creditors cannot garnish your benefits to repay debts.
