It is also important to note that owing back taxes does not affect your eligibility to apply for or receive Social Security benefits. Important to know, generally lump sum death benefits and benefits children receive are not within the FPLP.
And if you haven't paid any or enough tax, you won't qualify regardless of how much you earn or how serious your medical condition is. The minimum amount that you need to earn and pay tax on is based on what the Social Security Administration (SSA) calls work credits.
As long as you meet the Social Security disability requirements or income requirements, you can collect your SSDI and SSI when you owe taxes.
Yes, you can still be eligible for Medicare even if you owe back taxes to the IRS. Eligibility for Medicare is primarily based on age and disability status, as well as whether you or your spouse have paid Medicare taxes for a certain amount of time.
The IRS can garnish (offset) 15 percent of federal benefits like social security for past due income taxes. It is less common for the IRS to garnish pensions and other retirement income.
People aren't automatically enrolled in Medicare if they aren't getting Social Security or aren't eligible for Social Security retirement. They can sign up by completing an application for Part A (Hospital Insurance) (CMS 18-F-5 (PDF)) or by contacting the Social Security Administration (SSA).
The IRS may agree that you have a financial hardship (economic hardship) if you can show that you cannot pay or can barely pay your basic living expenses. For the IRS to determine you are in a hardship situation, the IRS will use its collection financial standards to determine allowable basic living expenses.
Time Limits on Paying Back Taxes in California
According to § 19255 of the California Revenue and Taxation Code, the state has 20 years from the date your taxes become due and payable to collect.
All taxpayers with outstanding tax debts are subject to a levy on assets and income sources, including Social Security benefits. There are two ways the IRS may levy upon your Social Security benefits – via the automated Federal Payment Levy Program (FPLP) or by a manual (non-FPLP) levy.
If you haven't filed your federal income taxes for a few years and owe back taxes, that won't affect your Social Security benefits, unless you were self-employed during those years and weren't paying your Social Security (FICA) taxes.
If you've worked and paid taxes into the Social Security system for at least 10 years and have earned a minimum of 40 work credits, you can collect your own benefits as early as age 62.
If you have no record of paying into the system, you will not receive payouts. If you have not reported income and evaded taxes for a lifetime, then you will receive no Social Security benefits.
The IRS has a limited window to collect unpaid taxes — which is generally 10 years from the date the tax debt was assessed. If the IRS cannot collect the full amount within this period, the remaining balance is forgiven. This is known as the "collection statute expiration date" (CSED).
Can my benefits be garnished to pay my government debts, child support, or spousal support? Social Security and Social Security Disability Insurance (SSDI) can sometimes be garnished to pay money you owe to the government, such as back taxes or federal student loans, and money you owe for child or spousal support.
Failure to pay amount shown as tax on your return
The failure to pay penalty is 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid. The penalty won't exceed 25% of your unpaid taxes.
6 years - If you don't report income that you should have reported, and it's more than 25% of the gross income shown on the return, or it's attributable to foreign financial assets and is more than $5,000, the time to assess tax is 6 years from the date you filed the return.
The IRS ultimately determines whether you qualify for debt forgiveness. However, the agency generally considers taxpayers who meet these criteria: a total tax debt balance of $50,000 or less, and a total income below $100,000 for individuals (or $200,000 for married couples). Need to talk to a tax relief specialist?
Payment options
The IRS may be able to provide some relief such as a short-term extension to pay (paid in 120 days or less), an installment agreement, an offer in compromise, or by temporarily delaying collection by reporting your account as currently not collectible until you are able to pay.
First Time Abate relief and unpaid tax
You call us requesting penalty relief and we give you First Time Abate. We remove the penalty up to the date of your request. However, the penalty will continue to increase since the tax is not fully paid.
How much will the IRS settle for? The IRS will often settle for what it deems you can feasibly pay. To determine this, the agency will take into account your assets (home, car, etc.), your income, your monthly expenses (rent, utilities, child care, etc.), your savings, and more.
Although many of the programs base benefit amounts and eligibility to work history, there are some instances where a person who has never worked can collect benefits. One program that provides benefits to people, not based on their work history, is Supplemental Security Income (SSI).
To qualify to get $144 added back to your Social Security check, you can enroll in a Medicare Advantage plan that offers a Part B premium reduction or giveback benefit.
Most people pay no premiums for Part A. For Medicare Part B in 2025, most beneficiaries will pay $185 per month. Certain factors may require you to pay more or less than the standard Medicare Part B premium in 2025.