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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11153
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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SSR 79-4:SECTION 6305 "ONE EFFECT OF THIS PROVISION IS TO

Customer Question

SSR 79-4:SECTION 6305
"ONE EFFECT OF THIS PROVISION IS TO RENDER THE SOCIAL SECURITY BENEFITS SUBJECT TO LEVY BY THE SECRETARY OF THE TREASURY FOR THE COLLECTION OF DELINQUENT CHILD SUPPORT PAYMENTS IN THE SAME MANNER AS THEY WOULD BE SUBJECT TO LEVY FOR COLLECTION OF DELINQUENT FEDERAL TAXES EXCEPT THAT:
(1) NO INTEREST OR PENALTIES SHALL BE ASSESSED OR COLLECTED."MY QUESTION IS: CAN THE STATE OF WISCONSIN'S CHILD SUPPORT AGENCY COLLECT THE $100,000 IN INTEREST OWED ON PAST CHILD SUPPORT BY PUTTING A ADMINISTRATIVE LEVY ON MY SSDI BENEFITS.
Submitted: 11 months ago.
Category: Tax
Expert:  Lane replied 11 months ago.
No they cannot...See this:...TO: ***** TRIBAL IV-D DIRECTORSRE: Garnishment of Supplemental Security Income BenefitsDear Colleague:On February 23, 2011, the Department of the Treasury, in conjunction with other federal agencies, issued an interim final rule1 regarding the garnishment of accounts containing federal benefit payments. In light of this rule, the federal Office of Child Support Enforcement (OCSE) is emphasizing our policy related to garnishing federal benefits, especially those related to Supplemental Security Income (SSI) benefits. We urge state and tribal child support agencies to implement automated and manual safeguards to ensure that SSI benefits are not garnished. Inappropriate garnishments result in financial hardship for the parties, and are contrary to law. We are reviewing our regulations to determine whether additional requirements are needed to ensure that exempt federal benefits are not garnished.
Expert:  Lane replied 11 months ago.
The Social Security Act (the Act) permits garnishment of child support directly from the federal payor of “moneys payable to an individual which are considered to be based upon remuneration for employment.” See Section 459(h)(1) of the Act. These payments include certain federal benefits based upon remuneration for employment, such as:Social Security disability insurance under title II;Social Security retirement benefits under title II;Civil Service Retirement System benefits;Federal Employees Retirement System benefits; Service-connected Veterans Affairs disability benefits received in lieu of retirement or retainer pay; and Benefits paid or payable under the Railroad Retirement System. ...HOWEVER these are not means tested programs, these benefits are generated through hainvg enough work record credits to be covered under the program...Because SSI is a means-tested program that is not based on remuneration for employment, SSI benefits authorized under title XVI of the Act are exempt from child support garnishment and income withholding. To qualify for means-tested benefits, the recipient must have a financial need because he or she earns little to no income and has few resources. Additionally, the recipient must also be at least 65, blind, or disabled.
Expert:  Lane replied 11 months ago.
I hope this has helped....Please let me know if you have any questions at all....If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the faces or stars on your screen, and then clicking “submit")...JustAnswer will not credit me for the time and work until you have rated in this way....Thank you!Lane……I hold a law degree (JD, Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security/Medicare, estate, corporate, both for-profit and non-profit, and tax advice, since 1986
Customer: replied 11 months ago.
I am 70years old totally disabled since Sept 2004. SSDI Monthly benefit of $2,155.80. Deductions include $700/mo Past Alimony and Child Support and SSI Part A & B. $1,085 Net. Last month Wisconsin Child Support Agency initiated a administrated levy against the financial institution where both mine and my four minor children's benefit monies were seized. I was not told this was happening. I wrote the Director of Brown County Child Support Agency and asked for a response in writing. None but a phone call from her department saying a automated error happened and was sent a notice they were releasing funds. Can they come after my SSDI not SSI Benefits for interest owed on unpaid balances.
Expert:  Lane replied 11 months ago.
No, as you correctly surmised, NOT for interest ON the balance.