So the government takes 15% then they take out in taxes another 24% = 39% = loan sharking!?!? how is that possible?
2007-04-07 06:08:56 · 6 answers · asked by shorty 2 in Business & Finance ➔ Taxes ➔ United States
I would ask a CPA (certified public accountant)
2007-04-07 06:13:50 · answer #1 · answered by JD 2 · 0⤊ 0⤋
No, the garnishments are for bills you owe, so come out of money you've paid tax on. If you had paid them on time, they would have come out of your after-tax money.
If they're for something deductible like medical expenses, then the part that goes to pay the actual bill is deductible as a medical expense just like it would have been if you'd paid it on time. Any interest or collection fees on these amounts is not deductible.
If they're for something that would NOT have been deductible, like federal income taxes, child support, credit card bills for example, then all you're doing is paying them now with after-tax money like you would have in the first place if you had paid them when they were due.
2007-04-10 02:41:02 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Wage Garnishment is put in place to pay outstanding loans or debts you were unable or refused to pay in the past. You are not allowed to use the garnishments for taxes. Your gross pay is what you file taxes on anyways, your net is what they garnish.
2007-04-07 06:17:48 · answer #3 · answered by Steelr 4 · 1⤊ 0⤋
If you have had garnishments for money that you owe the IRS, I would say no, you can't use that for a deduction on your taxes.
2007-04-07 06:15:31 · answer #4 · answered by Ridiculous 3 · 1⤊ 0⤋
Short answer, only if you could have deducted the item if you had paid without the garnishment. HOW you pay is irrelevant. WHAT you pay determines deductability.
2007-04-07 07:52:31 · answer #5 · answered by STEVEN F 7 · 1⤊ 0⤋
I assure you that they are not the "Boy Scouts".
2007-04-07 06:13:02 · answer #6 · answered by Anonymous · 0⤊ 0⤋