For many retirees, Social Security is an important source of retirement income -- one they hope to maximize. But there are a few factors that could slash the value of your check. Which ones could impact you, and what can you do about them?
The average Social Security benefit for retired workers was $1,925.46 (as of November 2024), which works out to $23,105.52 per year. Benefits that your spouse, ex-spouse or children receive based on your benefit amount may not reduce your benefit, but there are several garnishments and levies that could.
Medicare Part B premiums are automatically deducted from your Security benefit (the standard premium in 2025 will be $185 per month). Your check might also be reduced if you're younger than full retirement age, choose to work while receiving benefits or make more than the prescribed yearly earnings limit. Also, if you receive a pension from an employer that didn't withhold Social Security taxes, then your benefit could be reduced based on the amount of that pension.
Other deductions are optional. For example, you might opt to have your federal income taxes withheld from your benefit to reduce your payment at tax time. Using Form W-4V, you can opt to have 7%, 10%, 12% or 22% of your benefit withheld. Depending on your insurance provider, you could also opt to have Medicare Part C and Part D premiums deducted.
If you have consumer debt, a debt collector can't garnish your Social Security benefit, but your payments could be dramatically reduced by garnishments and levies resulting from federal debts and court orders. These can result from owing federal back taxes, federal student loans, alimony and child support.
Federal back taxes: If you owe federal back taxes, the Internal Revenue Service (IRS) can garnish up to 15% of your monthly Social Security benefit until the debt is paid off. You may contact the IRS to discuss appeal options, including a request for a levy release based on immediate economic hardship. The IRS may release the levy under certain circumstances -- say, for example, if doing so will help you pay your taxes or if you make an installment agreement.