The Ins and Outs of IRS Wage Garnishment | Flat Fee Tax Service
Updated: Nov 22, 2019
The Ins and Outs of IRS Wage Garnishment: What You Need to Know
An IRS wage garnishment can be among the most financially debilitating and stressful occurrences. Those with money troubles are often blindsided when their employer is ordered to submit a percentage of their wages directly to the IRS. In addition to being financially and emotionally troublesome, an IRS wage garnishment can also be a slippery and confusing slope to endure.
The ins and outs of what exactly it means, how much the IRS is entitled to take and your rights as a citizen should be carefully understood. Often, an experienced tax attorney or outside tax professional may be brought in to provide IRS wage garnishment help. However, if a tax professional cannot be obtained, understanding IRS wage garnishments on your own is the first step to getting out of tax debt.
There are a number of reasons why the IRS will garnish your wages. Generally it happens due to unpaid back taxes. Other situations such as unpaid child support, alimony or student loan debt can also be the cause. Some tax laws vary by state, so it’s important to understand the laws specific to your location. If the process has begun the IRS is entitled to at least 25 percent of your disposable income.
THE IRS MUST ALLOW A TAXPAYER THEIR "ALLOWABLE EXPENSES."
Your disposable income is established by subtracting required deductions from your total paycheck. Required deductions include things like federal and state taxes, state unemployment insurance taxes, Social Security, and required retirement deductions. Allowable expenses include: housing, food and clothing, health insurance, term life insurance, utilities, car payments, secured loans, alimony, child support, etc.