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    roberto2009's Avatar
    roberto2009 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Aug 24, 2009, 12:43 PM
    Taxes and ss disability
    Can the IRS garnish the initial lump sum payment you receive after winning your ss disability case if you owe back taxes?
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
    		  
    #2

    Aug 24, 2009, 01:29 PM

    My research shows that IRS can seize money from any type of payment to meet back taxes.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Aug 24, 2009, 02:25 PM
    That is NOT entirely true.

    Both normal periodic Social Security and Social Security Disability payments are exempt from IRS garnishment if you can show that such garnishment will drive you to a poverty-level standard of living.

    However, a lump-sum payment will be fair game for an IRS garnishment to pay back taxes of less than ten years.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #4

    Aug 25, 2009, 01:12 AM

    Yes, IRS can garnish SS disability payments. It can not garnish SSI payments.
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