Federal Wage Garnishment Laws

There are many ways to avoid wage garnishments from happening, but once a consumer is faced with a wage garnishment, it is very important that they become well versed in the federal wage garnishment laws that are designed to protect them. People can enter into wage withholding situations voluntarily with the IRS, and not all wage garnishments are the result of a court injunction. These laws have amendments and clauses therein to protect the average consumer from being left completely destitute and financial destruction.

Understanding laws surrounding wage garnishment

Taxable income would include, state, local, and federal taxes, as well as any deductions made for health insurance, union dues, 401K or retirement deductions, previous wage garnishments, child support, social security, savings bonds or charity deductions. Also any type of income being withheld for the purpose of an employee loan are also exempt according to federal wage garnishment laws.

How much money can they take from me?

Federal wage garnishment laws require that a only a certain amount of income may be withheld in a certain pay period. The figures set up are as follows: twenty-five percent of the employees after tax income or the amount by which the after tax income is thirty times more than the federal minimum wage, and minimum wage standards vary state by state, the weekly garnishment amount cannot go over these two figures. This figure is based upon a person who receives a weekly pay check, however, if you are paid bi-weekly or monthly, then the wage garnishment will be recalculated and the amounts reflected based upon that information.
This income is as follows but not limited to the following: child support, veterans pay, government pension payments, unemployment benefits, public aid, funds in a community or joint account shared with others including a spouse, and various other types of income provided to you by the state.

What else can the IRS do besides take payroll wages?

It is important to note that if you owe money to the IRS, you need to do the best you can to settle it; otherwise the IRS may garnish your wages or levy your bank account. You may be able to avoid legal action being taken by contacting the IRS and working with them to come to some type of agreement, thus avoiding wage garnishments or bank levies altogether. It should be noted that the IRS has a limited amount of time to collect an outstanding tax debt. Certain taxpayer actions may extent the statute of limitations and allow the IRS more time to collect. You must be aware the IRS will continue to seek withholdings until the debt is paid in full. There is no laws around that are going to protect you if you run and try to hide from the IRS, so it's best to face it head on and be prepared.

What to do when you are facing a IRS wage garnishment

If you find yourself facing with an IRS wage garnishment and are confused about federal wage.

IRS Tax Attorney