Wage Levy? How much will they take?

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03 August 2020

Wage Levy? How much will they take?

A Wage Garnishment, or Wage Levy, is when the IRS goes directly to your employer to get your money.  Your employer will receive a letter from the IRS detailing your Wage Levy/Garnishment, along with Publication 1494.

Publication 1494 details exactly how much the employer must allow you to keep, and send the IRS the rest.  Here is an example.

  • You are married, claiming 1 dependent and are under 65 years old.
  • You get paid every other Friday.
  • Your usual, pre-Garnishment, Take Home pay is $1,560.

In this example, the IRS Tables allow you to keep $1,100 of your paycheck.  The rest, $460, goes to the IRS. This would add up to almost $12,000 a year going to the IRS.

When will this Wage Levy end?  The garnishment will end when either the entire IRS debt is paid, or other arrangements are made with the IRS to pay your debt.  Quitting your job will also end the garnishment, though the IRS will be watching for your next employer.

How do I STOP an IRS Wage Garnishment?

Even after the IRS has began to garnish your wages, you can stop it.  Contact the IRS and set up a payment arrangement, or other resolution.  There are many different options depending on your specific situation.

Will the State garnish my wages?

Yes, every State has the power to garnish your wages.  While each state operates differently, it has been my experience that States are far more aggressive and difficult to deal with than the IRS.

Jeff Roltgen, Tax Rescue CPA

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