Tax Problems

Wage Garnishments

Don’t let your time to respond to an IRS wage garnishment expire.

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“If you are facing an IRS wage garnishment, it could have lasting financial impact and cause severe financial hardship. The good news is there is help available to get IRS wage garnishments released quickly. ”

- Alyssa Maloof Whatley

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What Is A Wage Garnishment Or A Levy?

Wage levy, or garnishment, is one of the most effective ways for the IRS to collect back taxes due. Once you’ve received notice that the government intends to take your paycheck to satisfy your tax debt, you’re on a tight clock to respond.

If you’ve gotten a Notice of Intent to Levy, you need help from a qualified tax attorney today to respond in a timely manner and to preserve your assets and your ability to pay your bills and to purchase necessities like groceries.

Every tax problem has a solution but you need someone who has the expertise to assess your situation and develop a tailored solution that reflects your financial situation.

How Does The IRS Determine The Amount To Garnish From Your Paycheck?

The IRS calculates the amount of wages to garnish based on the standard deduction and calculated in part based on the number of dependents you are allowed for the year in which the levy is served. Your employer should provide you with a Statement of Dependent and filing Status to complete and return within 3 days. If you do not return the statement in three days, your exempt amount is figured as if you are single with no dependents.

Can The IRS Garnish Wages Without Notice?

No, by the time you are facing wage garnishment, the IRS has sent several notices including a Notice of Levy with rights to a hearing. Within the wage levy process itself, there is another timeline for a response from the taxpayer.
 
It’s critical that you, or a tax professional make a timely response on your behalf before your employer receives the wage garnishment notification.

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Pro Tip:

Two jobs? You might pay more.

If a taxpayer has two jobs, there are circumstances where the IRS might garnish all the wages from a second job to satisfy an outstanding tax debt. If you receive a 1099, the IRS can levy 100% of 1099 income.

From left to right, Alyssa Maloof Whatley, Harrison Kulp, and Kiara Maxie

What Kind Of Income Are Protected Or Exempt From IRS Garnishment?

The IRS cannot garnish the following sources of income:

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Disability payments and Social Security benefits

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Veterans’ Federal Benefits

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State disability benefits (ABD)

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State welfare benefits (TANF)

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Supplemental Security Income (SSI) benefits

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Most pensions

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Compensation for unemployment, except for child support you owe

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Any child support payments you receive

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Federal student loans

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Will An IRS Wage Garnishment Affect My Credit Score?

An IRS wage garnishment doesn’t affect your credit score directly; however, suddenly finding yourself with only part of your expected income can mean that credit cards or other lines of credit go unpaid.

If you’re facing a potentially long-term garnishment scenario, it won’t take long for missed payment to impact your credit. This is why you need to have an experienced tax attorney review your situation before you face the far-reaching effects of a wage garnishment.