When the IRS garnishes your wages, it’s taking a portion of your paycheck before you ever even see it. Your employer is required by law to withhold the money and send it directly to the IRS.
The amount that the IRS can take depends on how much you earn and how many dependents you have. The more you earn, the more they can take. And if you have dependents, they can take a larger portion of your paycheck than if you don’t.
The IRS typically only garnishes wages as a dispute your taxes after other attempts to collect unpaid taxes have failed. But if you’re facing wage garnishment, it’s important to understand how it works and what your options are for avoiding or stopping it.
What can you do to protect yourself from wage garnishment?
If you owe the IRS back taxes, you may be subject to wage garnishment. Wage garnishment is when the IRS requires your employer to withhold a certain amount of your paycheck to go toward your tax debt. The amount that can be garnished depends on how many dependents you have and your deduction rate.
There are a few things you can do to protect yourself from wage garnishment. First, try to work out an installment agreement with the IRS. This will allow you to make monthly payments toward your tax debt instead of having a large chunk taken out of your paycheck all at once. You can also request a collection due process hearing, which allows you to dispute the wage garnishment. If you prove that the wage garnishment would create a financial hardship for you, the IRS may agree to stop or lower the amount being Garnished.
If you are already subject to wage garnishment, there are still some things you can do. You can contact the IRS and ask them to release the wage levy if you need the money for basic living expenses like housing or food. You can also ask them to agree to a reduced payment schedule if you are facing financial hardships.