I had a credit card with a $200 maximum balence allowed. In 2 week's time, the company (this was years ago) tried to say my balence was $1200, then $1500, then $1800, then $2100. I argued with thier customer service that it was not me, and how could a $200 balence go so high in 2 or 3 weeks? Then after a few years after thinking I paid off the over $200 balence, I was working at a place, and someone started taking $73 per paycheck out of my wages. I was never notified by the credit card company, nor my employer's payroll department. This caused me financial ruins. I hardly can pay my bills now, but I hope maybe I'll get a descent tax refund. Do garnishment people steal our identities? It's funny how the W-2 form doesn't list over $1000 that I paid out in garnishments. Will I owe because about $1000 was garnished, but not taxed or anything? It's still $1000 I made.
2007-02-25 05:36:30 · 3 answers · asked by wallaroo w 2 in Business & Finance ➔ Taxes ➔ United States
It was a commercial debt that you owed, it does not affect you taxable income at all.
It can not be deducted from income
2007-02-25 05:44:00 · answer #1 · answered by Anonymous · 1⤊ 0⤋
There is no tax consequences for a garnishment for a defaulted credit account. It is not deductible from your income for tax purposes and would not be reflected on your W2.
If your wages were garnished, the creditor DID have a court judgment against you. If you failed to respond to the subpoena and defend your case in court, they got a default judgment against you; you have only yourself to blame for that.
There are predatory credit card companies out there. If you applied for the card and didn't read ALL of the terms and conditions you again have only yourself to blame.
You might have a case against them for predatory business practices but you'd need to consult with an attorney on that. If you have minimal resources, you may be able to get assistance from Legal Aid. The best time to assert that defense was during the court case against you, but it would be worth a consultation with an attorney to see where you stand.
2007-02-25 05:49:19 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
sorry to hear that 73 bucks can put you in financial ruin. whether you pay it back out of your wallet or your pay check, you are still liable to pay with no regards to tax or no tax
2007-02-25 05:46:03 · answer #3 · answered by Anonymous · 0⤊ 0⤋