Yes. The IRS can take part of certain Social Security benefits when you owe federal taxes. Through the Federal Payment Levy Program (FPLP), the IRS can generally withhold 15% of eligible retirement and survivor benefits every month.

For many retired New Jersey residents, Social Security pays for housing, groceries, and medication. Losing even 15% can create a serious hardship. Relief may be available, but stopping these automated deductions can take longer than releasing an ordinary wage levy.

At Tomes Law Firm, we are seeing these levies more often in our tax resolution practice. Our team reviews the tax debt, the taxpayer’s finances, and the available ways to stop collection. Here is what you should know.

What Is the Federal Payment Levy Program?

The FPLP allows the IRS to collect overdue federal taxes from certain payments made by the federal government. The IRS coordinates with the Treasury Department’s Bureau of the Fiscal Service, so the deduction can occur before Social Security reaches your account.

Suppose Mary receives $2,000 in monthly retirement benefits. A 15% levy would take $300 each month, or $3,600 over a year. That can be the difference between paying a utility bill and filling a prescription.

An FPLP levy can continue against eligible payments until it is released, the debt is paid or otherwise resolved, or the IRS can no longer legally collect it.

Can the IRS Take Social Security Even If You Need It to Live?

Yes, but important protections exist. The IRS uses a low-income filter that generally screens certain Social Security recipients whose income is at or below 250% of the federal poverty guidelines. The screening is based on IRS records and has limitations. For example, unfiled tax returns can interfere with this protection.

Being above the filter does not mean you can afford the levy. Housing costs, medical bills, and other necessary expenses may still create economic hardship. The IRS must release a levy when it determines that the levy prevents you from meeting basic, reasonable living expenses.

Which Social Security Benefits Can Be Levied?

Retirement and survivor benefits: Generally eligible for the FPLP’s 15% levy.
Social Security Disability Insurance (SSDI): The IRS stopped systematically levying these benefits through FPLP in 2015, although other levy procedures may apply.
Supplemental Security Income (SSI): Not subject to FPLP. Certain children’s benefits and lump-sum death benefits are also excluded.

Why Can a Social Security Levy Be Harder to Stop Than a Wage Levy?

With a wage levy, an employer can stop withholding after receiving and processing the IRS release. An FPLP levy involves IRS and Treasury payment systems. Even if the IRS agrees to release the levy, the change may not reach the next monthly payment in time.

In our experience, obtaining the approval and confirming that the money has actually stopped being withheld are two different tasks. A client may need continued follow-up, particularly when a payment is already being processed.

Allison’s Story: Three More Months of Deductions After Hardship Approval

We represented a taxpayer we will call Allison. After reviewing her finances, we obtained IRS approval for Currently Not Collectible (CNC) status because she could not afford to pay while meeting necessary living expenses.

The problem was that the levy continued. For three more months, Allison lost money from her benefits even after the IRS had approved CNC status. We pursued the issue and ultimately involved IRS Counsel and a United States congressional office to get the deductions stopped and the three months of continued collections refunded.

Allison’s experience shows why we do not treat an IRS approval as the end of a case. We follow through to find out whether the relief was actually implemented. Allison is a pseudonym; outcomes depend on each taxpayer’s facts.

Can Currently Not Collectible Status Stop a Social Security Levy?

It can. CNC status is available when the IRS finds that a taxpayer cannot currently pay the tax debt while meeting necessary living expenses. Once the account is placed in CNC status and the required release steps are completed, active collection generally stops.

CNC is a pause, not forgiveness. The tax remains due, penalties and interest can continue, and the IRS may revisit the taxpayer’s finances later. An existing levy may need a separate release, so it is important to confirm what actually happens to future payments.

Can You Get Back Social Security Money the IRS Already Took?

Sometimes. A levy release and the return of money already collected are separate issues. The IRS can return levy proceeds in certain circumstances, but a refund is not automatic. Deadlines can apply; for many levies issued after March 22, 2017, a request for return must generally be made within two years of the levy date.

Allison received the three months of continued deductions back, but it required considerable follow-up and escalation. If deductions continue after a release decision, address the issue promptly and keep records of each payment affected.

Can the Social Security Administration Stop the IRS Levy?

No. The Social Security Administration says it does not have authority to stop or delay an IRS FPLP levy or refund amounts already withheld under it. The IRS handles levy relief and any return of funds. Calling Social Security alone generally will not fix the tax levy.

What Should You Do If You Get an IRS Social Security Levy Notice?

1. Read the notice immediately. The IRS commonly sends CP91 or CP298 and generally gives 30 days from the notice date to make arrangements before the 15% deduction begins.
2. Check the balance and tax years. Make sure payments or adjustments have been credited.
3. Review income and necessary expenses. Medical, housing, and other costs may support a hardship request.
4. Consider your resolution options. These may include CNC status, an installment agreement, or another appropriate arrangement.
5. Confirm that deductions stop. Approval is important, but so is seeing the full benefit arrive in the next payment.

Can New Jersey Take Social Security for State Tax Debt?

The New Jersey Division of Taxation uses its own collection procedures, not the federal FPLP. State tax collection and applicable exemptions must be evaluated separately from an IRS levy.

Frequently Asked Questions

Can the IRS take my entire Social Security check? The automated FPLP generally takes 15% of eligible benefits. Other IRS levy procedures operate under different rules.

Can the IRS levy my Social Security if it is my only income? Possibly, but low-income screening and financial hardship protections may apply.

Does CNC approval automatically stop the next deduction? Not necessarily. The IRS must process the appropriate release, and payment-system timing can matter.

Can I recover money taken after hardship relief was approved? It may be possible. Ask promptly about return-of-levy procedures and applicable deadlines.

Should I contact Social Security or the IRS? Contact the IRS for an FPLP release. Social Security cannot stop the federal tax levy on its own.

Don’t Wait Until Your Social Security Check Gets Smaller

For many retirees, Social Security is how they pay for food, housing, and medical care. At Tomes Law Firm, we know that an IRS decision is not always the same as a completed resolution. Allison’s case is a reminder of why careful follow-through matters.

If you received a levy notice or deductions have already started, contact Tomes Law Firm to discuss the available options for your federal or New Jersey tax debt. Contact the Tomes Law Firm tax resolution attorneys and accountants at 732-333-0681 or 833-4IRS-TAX for a confidential free consultation.

We Solve Tax Problems. You Get Peace of Mind.

Official Sources and Further Reading

IRS: Social Security benefits eligible for the Federal Payment Levy Program

IRS: How do I get a levy released?

IRS: What if a levy is causing a hardship?

SSA: Federal Payment Levy Program proceduresTaxpayer Advocate Service: Federal Payment Levy Program low-income filter