What Is Deducted From Social Security Retirement Benefits?
The Social Security Act originally prohibited collection of any debts from Social Security benefits. But in 1975, Congress amended the Act, allowing garnishment of certain debts. Social Security also recovers Social Security overpayments and collects Medicare premiums from benefits.
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Medicare Premiums
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Medicare Part B covers physician's fees and most outpatient services. Social Security collects the premium, $110.50 monthly in 2010, from monthly benefit checks. Premiums are higher for and individuals with income above $85,000 or $170,000 for a married couple.
Medicare Part D
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Medicare Part D, Medicare's optional prescription drug plan, has a monthly premium. Beneficiaries enrolled in a plan with a private provider have the option to pay the premiums directing to the provider or by withholding from Social Security benefits.
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Social Security Overpayments
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Sometimes Social Security beneficiaries receive more benefits than they were due, either through agency error or the beneficiary's failure to report changes. Social Security always proposes withholding all benefits to recover overpayments, but recipients can negotiate repayment rates.
Supplemental Security Overpayments
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Beginning in 2005, the Social Security Protection Act of 2004 gave the agency permission to collect outstanding Supplemental Security Income overpayments from Social Security benefits of former SSI beneficiaries. The recovery rate cannot exceed 10 percent of Social Security benefit amounts.
Treasury Offset Program
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The Debt Collection Improvement Act of 1996 created the Treasury Offset Program authorizing the U.S. Treasury to recoup non-tax federal debts such as student loans, Veterans Administration overpayments or state income tax arrearages from debtors' Social Security benefits.
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References
- Social Security Act: Section 459(a) garnishment of benefits
- Medicare: Medicare Part B Premiums
- Social Security Program Operations Manual: Recovering SSI overpayments from Social Security benefits
- U.S. Treasury Department: Report to Congress-Debt Collection Activities
- Social Security Programs Operations Manual: Social Security Overpayment Recovery
Resources
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