dose anyone know .. will i have to owe the IRS at the end of the year bc i have a wage garn outta my pay check?
2006-11-16 13:56:21 · 4 answers · asked by kate c 1 in Business & Finance ➔ Taxes ➔ United States
You are having some wages garnished because of a debt you owe. It could be child support or back taxes. The garnishments are being used to pay that specific debt. Whether or not that specific debt is paid off by the end of the year depends on how much you owe, the interest rate, and how much they take from your wages. As far as your 2006 tax liability that you will figure out in early 2007 on your 1040, the garnishment has absolutely no affect one way or the other. It doesn't lower your 2006 taxable income, it doesn't lower your 2006 taxes, and it doesn't increase the amount of tax withholding you get credit for on box 2 of your W-2.
In short, the garnishment only goes against your existing debt and has no consequence at all on your 2006 tax liability. Whether you owe or get a refund on your 2006 taxes is based on tons of information you didn't not provide. You must do a tax return to determine if you owe or get a refund for your 2006 taxes.
2006-11-16 14:28:46 · answer #1 · answered by TaxMan 5 · 0⤊ 1⤋
The garnishment shouldn't affect your return or the total taxes you owe. If the garnishment was from the IRS or some other governmental agency, they could end up grabbing any refund that's due you.
2006-11-16 14:19:27 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
You still pay taxes on the amount of money that was taken from your pay check as a garnishment, regardless of what the garnishment is for.
2006-11-17 05:28:29 · answer #3 · answered by ? 6 · 0⤊ 0⤋
I do know that if it is for a student loan or money that was loaned to you by a govt entity they can take your tax return. They should be taking that money out pre tax from your earnings. If you owe taxes then you still have to pay regardless.
2006-11-16 14:01:23 · answer #4 · answered by miso1cat 5 · 0⤊ 0⤋