Gibbs

A 1996 law allows the Federal Government to withhold portions of your Social Security check if you owe money to any division of the Federal Government.

This law was passed to collect many of the outstanding student loans and other federally insured debts that people seem to forget about over a period of time.

But if you signed or cosigned a student loan or any other federally insured loan program and have not paid it off or have not made the necessary arrangements to pay, your Social Security check could have deductions taken out of it without the benefit of going to court.

The IRS is most notorious for taking sums out of your bank accounts and levying up to 90% of your payroll check.

This year, the government will audit about five-million Social Security recipients to see if their affairs with the Federal Government are in order.

This law only applies to federal debts, not state debts. But those who receive $9,000 or less in yearly Social Security benefits will not have any deductions withheld from their checks, even if they owe money. And there will be notice given before any deductions are made. []

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