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Treasury Goes After Tax Delinquents About 55,000 of Social Security recipients who owe money to the federal government may get smaller checks starting in May. The Debt Collection Improvement Act of 1996 allows the government to reduce certain federal payments such as Social Security to repay money owed to the government. The offset reduction can be applied only to individuals whose benefit payments exceed a $750 per month threshold. Up to 15% of the monthly Social Security payment can be deducted until the debt is paid off, but no deduction can put a beneficiary`s monthly check below $750. The debts that will be collected include delinquent taxes, government-backed agricultural farm loans, housing loans, small-business loans, as well as over-payments for food stamps and Social Security benefits. Those affected will receive notification and are advised to respond to the address given to avoid putting benefits at risk. Source: `Benefit Payment Offset Program,` United States Treasury fact sheet, April 4, 2001. For more information click here To read more about your Social Security and Medicare benefits click here: http://www.tscl.org/OtherSocialSecurity&Medicare.asp This article first appeared in Volume 6, Issue 8 of "The Social Security and Medicare Advisor" newsletter (July/August/2001). To receive future editions of "The Advisor" in its special, free e-mail version, please click here. | ||||||||
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