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If I have back taxes in Currently Not Collectible status, and I am receiving Social Security benefits, can they garnish my disability, even if it will cause financial hardship?

April 26, 2017Benefits cause collectible Currently disability garnish social security Status taxes

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If I have back taxes in Currently Not Collectible status, and I am receiving Social Security benefits, can they garnish my disability, even if it will cause financial hardship?

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While you are in a Currently Not Collectible status, the IRS will not pursue collection activity. However, if that status does change, unfortunately, Social Security disability benefits are not tax exempt, which means the IRS can levy those benefits, up to 15 percent. Work related disability, however, is tax exempt.