I was wondering what percentage of a salary can IRS garnish per pay period? Some say 10%, Some say 15% while others say 25%. would appreciate to know the facts. Thanks
2007-09-21 12:34:48 · 3 answers · asked by sadealz 3 in Business & Finance ➔ Taxes ➔ United States
It depends on how many dependents you have and your filing status. The link is to the IRS publication that shows the exempt amounts. You are lucky if it is ONLY 25%. No matter what your income is you will only get the exempt amount or actual take home pay, whichever is less. I hope you are not facing this kind of levy. As an enrolled agent who specializes in representing taxpayers with collection problems I see this all the time. People don't start to deal with the problem until they are about to be crushed then they come to me in a panic asking for help.
2007-09-21 15:52:36 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If the IRS levies your wages they go by the withholding on your W4 form at work. If you claim single and 1 exemption they will allow $5,150 for the standard deduction and $3,300 for 1 exemption, total $8450/52 weeks=$162 a week to live on. They will also allow for your normal deductions such as taxes, health insurance, etc and they take the rest.
If this is too much out of your income for you to live on you need to set up an installment agreement with them and they will take a lower payment.
2007-09-21 23:31:17 · answer #2 · answered by Charlie & Angie G 4 · 0⤊ 0⤋
They can take most of your "disposable" income. If you are getting close to a wage attachment, the IRS will ask for information on your living expenses. If you fail to respond, they'll make their best guess -- probably a LOT more than if you had cooperated will be taken!
2007-09-21 20:03:11 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋