| Quick and Dirty...The IRS can use a wage garnishment, | | | | on their W-4 would receive 172.12 + any deductions + |
| sometimes called a wage levy to get money straight | | | | child support, if any; as income after a wage |
| from your gross pay check in order to payoff your | | | | garnishment is in effect. See IRS Publication 1494 [ for |
| IRS tax debt. There seems to be some mystery and | | | | a complete breakdown. |
| misconceptions' surrounding the wage garnishment and | | | | Because a wage levy is a non-voluntary form of |
| there is some straight information on how a wage | | | | paying back the government the taxpayer can not |
| garnishment works. | | | | designate where the levied money is to be applied. |
| How do they know what to take out? The IRS uses | | | | Can't you be fired...Some employers will threaten to fire |
| the following basic formula to figure out how much | | | | an employee who has had their wages garnished. An |
| they're going to take out of your paycheck. | | | | employer who fires an employee because of an IRS |
| The formula is a follows: the amount deducted from | | | | wage levy that employer can be fined $1,000 and/ or |
| you total expenses and filing status that you filed out | | | | face 1 year jail time. |
| on your W-4 form. The IRS then adds in your | | | | Top Secret...The only exception is for employees that |
| standard deductions, and what's left beyond that is | | | | have security clearance. For someone with security |
| what the IRS applies to your debt each pay period. | | | | clearance a tax lien or tax levy will cause their |
| The IRS will consider taking out less from your check if | | | | employment termination. |
| you can prove that you need additional funds to pay | | | | You can beat it...A wage levy is very difficult to live |
| the most basic bills. Also court ordered child support is | | | | with and the IRS will make sure they can keep it in |
| exempt from being levied. | | | | effect as long as possible. |
| For example: a single person claiming only 1 exemption | | | | Now you have the smoking gun...Use it! |