The IRS is required to leave you with a minimum amount of monthly income when your wages are being garnished.  The remaining funds will be seized and applied to your tax debt until your balance is paid off or the wage levy is released.

Key Insights We Will Discuss:

1.  How the amount of a wage garnishment is calculated
2. How bonuses, commissions, and other payments are treated in a wage garnishment.
3. What to do to prevent or eliminate a wage garnishment.

IRS Wage Garnishment Calculation

A certain amount of every individual’s wages is exempt from IRS levy.  This exemption is calculated based on your filing status and how many dependents you claim.

A single person with no dependents will be left with $1,033.33 each month.  A Head of Household with two dependents would receive $2,270.83 after the IRS levy.

The remainder of your paycheck will be applied towards your tax debt. Wage levies  are continuous, so the wage garnishment will continue every pay period until your balance is paid or the levy is released by the IRS.

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The IRS can be quite resourceful when it comes to collecting what they are owed. This allows them to even access and retrieve money from your salary to settle your tax debt.  When it gets to this point one can feel confused and even financially invaded but this is only a last resort of the IRS. This is after they have exhausted other approaches, which include sending several letters with no satisfactory response from the taxpayer.  Accessing your paycheck and retrieving an amount from your salary to settle your owed taxes is what IRS garnishment is all about.

This reclamation of one’s wages could extend to up to 70 percent but it can be avoided. The easiest way to avoid IRS garnishment is through paying your taxes diligently and on time. But what happens when you have already crossed that line? The following are five ways to stop IRS garnishment so that you are not left with barely anything to survive on due to tax debts.

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