Subscribe RSS Feedby Warren Buflet
Every day you worry, dreading the phone call or letter that you know must be coming. And, finally, there it is, in your mailbox. You already have money problems, but they are about to become a lot worse. You are making just enough money to pay your bills, but now you have to give up part of your paycheck every week. The letter from the Internal Revenue Service contains the phrase you have been dreading: garnishment of wages.
Anyone in this position has many questions. Can the IRS really take my paycheck? How much can they take? What does the law say in my state? Isn’t there anything I can do about it? A basic primer in the wage garnishment laws will answer all of these questions.
The IRS really can take your paycheck, but only a portion of it. They will send a letter to you and to your employer, and the money will be taken directly out of your paycheck. It will be a certain percentage of your disposable income, which is the money left over after your regular taxes are withheld. Federal law says that the most that can be garnished is 25% of disposable income, but some states have lower limits. Florida, for example, exempts anyone from garnishment if they are supporting a child, and New York limits the levy to 10%.
You can be pro-active and prevent this from happening, though. As soon as you get your first Notice and Demand for Payment call the IRS and set up an appointment. Ignoring them won’t make them go away, and you are more likely to be able to reach a settlement if you don’t wait until the wage garnishment has started. Even after you are given the Final Notice you have 30 days to set up a hearing before the wage garnishment starts.
Don’t try to deal with the IRS by yourself. The IRS will have tax professionals handling your case and so should you. Get more information from IRS debt specialists right now.
Tags: Garnish Wages, Garnishment of Wages, IRS Debt, IRS Wage Garnishment, Stop Wage Garnishment, Wage Garnishment Laws