When you owe money to the IRS or the state, your wages may end up being garnished. Sometimes, there are ways to end this garnishment and restore your paycheck back to its full amount.
If the IRS levies (seizes) your wages, part of your wages will be sent to the IRS each pay period until:
- You make other arrangements to pay your overdue taxes,
- The amount of overdue taxes you owe is paid, or
- The levy is released.
Part of your wages may be exempt from the levy and the exempt amount will be paid to you. The exempt amount is based on the standard deduction and the number of personal exemptions you are allowed. The IRS will contact your employer and explain to them how to determine the amount exempt from levy. Your employer will provide you with a Statement of Exemptions and Filing Status to complete and return within three days.
Sometimes, your financial circumstances may change - and require the IRS to modify or release the levy. For example, child support takes priority over the IRS.
If you have any questions about an IRS or state tax wage garnishment, contact me and I will be glad to help.