Can the IRS Garnish ALL Of My Income?

On: April 20, 2024

Facing a wage garnishment from the IRS can leave you scared, confused, and baffled. While you never expect the IRS to come after you and take your wages, it can happen, especially when you have an unpaid tax debt. If you have received a notice in the mail that states that the IRS is going to garnish your wages, you do not want to ignore it. It is time for you to reach out to experienced and knowledgeable IRS tax experts who can help you better understand what the wage garnishment entails, how it will affect you financially, and if you have any options to stop the garnishment. What Is a Wage Garnishment? A wage garnishment is an order from the IRS that tells your financial institution or employer to withhold a percentage of the money you earn. The garnishment can include withholding your bank accounts and assets as well. How Much Money Can the IRS Actually Take From Me? One of the most pressing questions that taxpayers have when they receive a wage garnishment notice is just how much the IRS will take from them. When it comes to the IRS, unlike other creditors, there is no state or federal garnishment limitation, which means that the IRS can garnish a very large portion of your earnings and leave you with very little money each and every paycheck. In most cases, IRS wage garnishments pose a significant financial blow to the individual and can create a dire financial situation. The actual amount that is garnished from your wages will depend on how much you owe in back taxes. I Have Two Jobs – Will the IRS Only Garnish the Wages From One? Not necessarily. In fact, the IRS may garnish the wages of both jobs. This means that you could end up paying more in the long run as the garnishment will be withheld from both paychecks. It is also possible that the IRS may withhold all income from the second job to pay back the debt that is owed. When the IRS determines how much your wages will be garnished, they will utilize a percentage that is applied to each of the jobs as opposed to lumping the two jobs together to calculate the garnishment amount. Is All Income Up for Garnishment By the IRS? No. There are sources of income that the IRS is NOT able to garnish including:

• Unemployment (except for owed child support)
• Pensions (in most cases)
• SSI and SSDI payments
• State disability benefits
• Veteran’s benefits
• State welfare benefits
• Federal student loans
• Child support payments (received)
• Social security benefits

How Long Will an IRS Garnishment Last? I’m Going to Go Broke! Unfortunately, if left unaddressed, a wage garnishment will last until either:

• The garnishment order is released
• Other arrangements to pay have been made
• The amount of overdue taxes has been paid in full

Our Experienced Tax Team Can Help You Fight an IRS Wage Garnishment Having your wages garnished can be scary and leave you in a financial predicament. You should not have to decide between putting food on the table or gas in your vehicle to get to work. Unfortunately, for many people who face IRS wage garnishments, the reality is that they cannot afford to pay their bills. Since the IRS is not limited in how much money they can garnish, they can leave you with very minimal money left over once they take their portion. Stopping an IRS wage garnishment is possible but it requires the assistance of an experienced tax professional to ensure it is done right and that your rights as a taxpayer are protected. At Leading Tax Group, our team is made up of experienced tax experts who will represent you to the fullest and work hard to get a stop placed on an IRS garnishment. We will explore your available options with you and work with the IRS to rectify the situation. Don’t let a tax issue like this worry you and reach out to Leading Tax Group today to discuss your options.