Mon – Fri
8 AM – 6 PM
If you’re subject to a tax levy, one of the assets that the IRS will target are your wages. The IRS prefers to levy liquid financial assets rather than other property such as real estate because there’s a faster timeline for repayment. If your wage is subject to a tax levy it will be garnished and you will be left with just enough to cover basic necessities. This works in theory but not in practice. Approximately fifty percent of your wages will be taken by the IRS until the debt is fully paid. For many, wage garnishment is humiliating and stressful. It’s not without hope though; there are ways to stop the wage garnishment and achieve tax resolution.
Sacramento tax attorney Jin Kim helps taxpayers stop wage garnishment, IRS levies, and other collection actions. Call her office at (916) 299-9913 to learn more about your tax resolution options.
Levy and Wage Garnishment
Levies and wage garnishment are a last resort for the IRS. When the IRS fails to collect the balance due, they’ll resort to taking property to pay for it. Virtually anything is fair game. Financial assets are preferred, but the IRS may also liquidate personal property such as vehicles and even real estate.
The good news is that it’s possible to prevent a levy. While the IRS may seem unforgiving, it’s also practical. If you can offer an acceptable method of tax resolution then a levy won’t be necessary. Options that you can choose from include making an offer in compromise or figuring out an installment agreement with the IRS.
These tax abatement options will still be available even if the levy is already in place. Between an installment plan and a levy, the former is a much better option because you’ll have more control over the payment. If you can raise the money, your tax attorney can also negotiate with the IRS to remove the levy in exchange for full payment. This is a viable option if you have a property you can dispose of to pay your liability promptly.
How Much Money Can I Protect From IRS Wage Garnishment?
The IRS can’t take your entire paycheck. IRS Publication 1494 details the monetary amounts that can be exempted from IRS wage garnishment. The amounts vary based on the filing status of the taxpayer and the number of dependents. For instance, as of 2021, a single taxpayer with 3 dependents can exempt (ie. protect) $489.42 weekly from IRS wage garnishment. Likewise, a married filing jointly taxpayer with 3 dependents can exempt $730.76 weekly.