Having a monthly Social Security payment is quite a relief in the United States. At the end of the day, the time when we can apply for retirement means that we will have a steady income without the need to work. But we can’t expect to always be getting the same amount of retirement checks.
Although it is true that the usual thing is that we have an increase in the check at the beginning of each year, it is true that sometimes we can find ourselves with indirect reductions in benefits. Thus, if we are not careful with our retirement payment we could lose a large portion of our check each month.
Deductions on Social Security Checks
Not all deductions are the same for all Americans. Each and every citizen has their own deductions based on their contracted services and, of course, on their work history.
So, what we should keep in mind is the following:
- Medicare Part B premiums: They are automatically deducted from the Social Security check ($185 per month in 2025).
- Working before full retirement age: If you work while getting benefits and exceed the annual earnings limit, your check may be reduced.
- Pension from employers who did not withhold Social Security taxes: May be reduced by the amount of that pensioner’s benefit.
- Voluntary deductions:
- Federal income tax withholding (7%, 10%, 12% or 22%).
- Medicare Parts C and D premiums, depending on your insurance provider.
- Federal debts and court orders:
- Delinquent taxes owed to the federal government: The IRS can garnish up to 15% of your monthly benefit until the debt is paid off.
- Federal student loans in default: They can garnish up to 15%, but must leave at least $750 a month.
- Child support and alimony: The Social Security Administration can garnish check according to court order. Limits are:
- Up to 50% if you support another family.
- Up to 60% if you are single.
- An additional 5% if you have more than 12 weeks of arrears.
- Multiple garnishments: If you have more than one type of garnishment or lien, the reductions can be significant.
If we take all of this into account when organizing our retirement, we can have a better standard of living, since we will know as much as possible what our final monthly Social Security check will be.