Monday, April 2, 2012

Just How Bad IS an IRS Wage Garnishment?

Can the IRS take your whole paycheck? What percentage can they take? Can't I just work overtime to make up for the money they take out? 

I hear these questions all the time and I'm amazed at how misinformed people are regarding IRS wage garnishments. No, the IRS can't take your entire paycheck. They can, however, take an entire 1099 check from someone you contract for. However, for regular W2 workers, the IRS has to leave you with something...since they will continue to garnish you every pay period until your debt is paid in full or you have reached some sort of legally binding agreement with them.

What percentage with they take? They don't take a percentage. They figure out how much they will leave you with every month. So, no matter how much overtime you work or whether you get a raise, you'll still be left with the same meager amount. If you get another job, it is entirely likely that the IRS will garnish that position as well. I talk to people all the time who work at multiple positions and the IRS is garnishing all of them at the same time.

It's time to get informed! If you believe there's a chance the IRS may garnish your wages, look at the updated 2012 IRS Publication 1494 Wage Levy Chart below. Figure out how much you'll be left with to:
  • Pay your utilities
  • Cover your mortgage or rent
  • Take care of medical expenses
  • Put gas in your car
  • Provide food for your family




    Image taken from the IRS Publication 1494 for 2012 available on their site.

    Don't let a wage garnishment happen to you, thinking it's not a big deal. Most people live paycheck to paycheck. Even if you've got plenty of funds socked away somewhere, there's nothing to stop the IRS from emptying that out as well. Call 888-415-1337 or fill out the form now for a free consultation. The IRS Hitman Team is skilled preventing and even STOPPING wage garnishments!

    4 comments:

    David Grey said...
    This comment has been removed by a blog administrator.
    Kate Dunkin said...
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    Kate Dunkin said...

    This is a great post explaining about how bad a IRS wage garnishment can be! I know when I was going through my issues with the irs my consultant helped me out so much with my irs wage levy . Thank you for sharing this and helping people like me out!

    Kaieza Damien said...

    Hi there! great stuff here, I'm glad that I drop by your page and found this very interesting. Thanks for posting. Hoping to read something like this in the future! Keep it up!

    As a collection tactic, the IRS/State often imposes a wage garnishment, which means that they literally take money out of every paycheck – often enough seriously jeopardizing an individual’s lifestyle and making it impossible to maintain the same standard of living.

    The negative effect of a tax lien is that when a person fails to pay any assessment of tax, plus interest, penalties, or costs, a tax lien arises upon all property and rights to property, whether real or personal, tangible or intangible, belonging to the taxpayer. Even if the taxpayer makes partial payment, a lien will arise for the balance of the tax.




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