What Is Deducted From Social Security Retirement Benefits?
- Medicare Part B covers physician's fees and most outpatient services. Social Security collects the premium, $110.50 monthly in 2010, from monthly benefit checks. Premiums are higher for and individuals with income above $85,000 or $170,000 for a married couple.
- Medicare Part D, Medicare's optional prescription drug plan, has a monthly premium. Beneficiaries enrolled in a plan with a private provider have the option to pay the premiums directing to the provider or by withholding from Social Security benefits.
- Sometimes Social Security beneficiaries receive more benefits than they were due, either through agency error or the beneficiary's failure to report changes. Social Security always proposes withholding all benefits to recover overpayments, but recipients can negotiate repayment rates.
- Beginning in 2005, the Social Security Protection Act of 2004 gave the agency permission to collect outstanding Supplemental Security Income overpayments from Social Security benefits of former SSI beneficiaries. The recovery rate cannot exceed 10 percent of Social Security benefit amounts.
- The Debt Collection Improvement Act of 1996 created the Treasury Offset Program authorizing the U.S. Treasury to recoup non-tax federal debts such as student loans, Veterans Administration overpayments or state income tax arrearages from debtors' Social Security benefits.