Wage Garnishments are a brutal and effective method the IRS uses to collect back taxes. It hits you below the belt; hurting your pay, your lifestyle, and even your pride! Let's face it, it's embarrassing!
Today I'll answer your Top 5 IRS Wage Garnishment Questions, and teach you how to remove a IRS Wage Garnishment of your own once and for all!
1. How much is the IRS allowed to take from my paycheck?
What is taken out of your paycheck depends on your filing status and number of allowable exemptions on your W-4. They rarely leave you enough money to cover basic necessities. You could be left with as a little as $791 a month! If you receive 1099 income, the IRS can take an entire check.
2. Can my boss refuse to IRS Wage Garnishment?
It wouldn't be wise for your boss or payroll department to prevent the garnishment. Not only is it illegal, but the IRS will hold your employer personally responsible if the garnishment isn't enacted.
3. Will the IRS leave me enough money to live on?
Short answer "Not unless you are living 20 years in the past." The IRS only leaves enough to barely survive. For most people this means deciding which bills they have to give up. Often it comes down to whether they should pay the utility bill or put food on the table.
4. Does the IRS still take out the regular taxes on my paycheck when they've issued a IRS Wage Levy?
Yes they do. In fact your IRS Wage Garnishment comes out first, and then your regular taxes are taken out of what’s left over.
5. I’m an independent contractor and don’t get a regular wage. Is there something like an IRS Wage Garnishment that the IRS can hit me with?
Absolutely, they can garnish any money you make from a job. As stated before, if you make 1099 income, the IRS will take an entire check. In addition the IRS can go to your clients and demand payment directly from them before you get paid (accounts receivables); which could damage your business’ reputation.
How to Remove Your IRS Wage Garnishment: You have to find a way to voluntairly repay the IRS. Since the IRS already has its paws on your pay, it won't be easy. I recommend consulting with a professional, they will quickly remove the IRS Wage Garnishment by finding the best payment arrangement for your lifestyle.