Don't say goodbye to your Social Security benefits: How to protect them from the upcoming garnishment

For millions of retirees, Social Security benefits are the bedrock of monthly finances, providing critical support that keeps households above the poverty line.

According to the Center on Budget and Policy Priorities, Social Security payments kept 22 million people-including more than 16 million seniors-out of poverty in 2023.

As the federal government prepares to implement new garnishment rules this summer, many Americans are now at risk of seeing a significant reduction in these essential payments.

The good news? If you act quickly, you may be able to prevent or minimize the financial impact.

How upcoming Social Security garnishments could affect you

In late July 2025, changes introduced during President Donald Trump‘s administration will go into effect, including the reinstatement of garnishments on Social Security checks for those with certain federal debts.

This means more than one million retirees and beneficiaries could see their payments shrink-sometimes by as much as 15 percent-if they owe money to the government.

Among the key updates are:

• A 15 percent garnishment for beneficiaries behind on federal student loans, scheduled to start July 24, 2025.
• Clawbacks for overpayments: The Social Security Administration (SSA) will pursue recovery of funds overpaid in previous years. After initially proposing a 100 percent recovery rate, the SSA reduced this to 50 percent after public backlash.
• Increased efforts to collect unpaid federal debts: The U.S. Treasury’s revived garnishment initiative allows for part of your Social Security check to be withheld to cover unpaid taxes, federal student loans, defaulted mortgages, and other federal debts.

While these measures aim to strengthen Social Security’s long-term sustainability, they have put new pressure on retirees, especially those living on fixed incomes.

What causes Social Security garnishments and overpayments?

Garnishments most commonly affect retirees who owe money on federal student loans, have delinquent taxes, or have defaulted on other federally-backed debts.

Overpayments can happen for various reasons-sometimes due to an administrative error, other times because beneficiaries fail to update their income or work status.

For instance, Social Security Disability Insurance (SSDI) recipients can earn up to $1,620 per month, but exceeding that limit without proper reporting may result in an overpayment and subsequent clawback.

The SSA reported that by the end of fiscal year 2023, nearly two million people owed money due to overpayments, with a staggering $23 billion yet to be recovered.

Protecting your Social Security: What you can do now

If you’ve received notice of an upcoming garnishment or simply want to avoid trouble, there are several proactive steps you can take:

1. Request a waiver or appeal the overpayment

• File Form SSA-632BK to request a waiver if you believe the overpayment was not your fault and repaying would create financial hardship.
• File Form SSA-561 to appeal the amount or status of the overpayment.
• If you need to reduce the garnishment amount, submit Form SSA-634 with documentation of your income and expenses.

2. Use a separate account for Social Security deposits

Federal law protects two months’ worth of Social Security deposits in a bank account from garnishment. To ensure this protection, open a dedicated account for your Social Security payments and avoid mixing in other income sources.

3. Apply for a Treasury hardship exemption

Retirees whose income is below federal poverty guidelines, or who rely solely on Social Security for essentials like food and medical care, may qualify for a temporary pause in garnishment. Contact the Bureau of the Fiscal Service or visit fiscal.treasury.gov for more information.

4. Act before the July 24, 2025 deadline

With garnishments set to begin soon, prompt action is critical. If you’ve received a notice, respond immediately and seek nonprofit credit counseling or legal assistance if you need help navigating your options.

Expert advice and what’s at stake

Legal experts warn that losing even a fraction of your monthly check can put basic needs out of reach.

“For many retirees living month to month, losing even 15 percent of a Social Security check can be devastating,” says Nancy Altman, president of Social Security Works. “It’s vital to know your rights and act before garnishment begins.”

As this new policy landscape takes shape, knowledge and timely action are your best defenses. With proper preparation, most retirees can still protect their Social Security income-ensuring financial stability even as government rules shift.