My Paycheck is Being Levied by the FTB. Is There a Way to Remove This? Can I Pay Them Voluntarily?

On: July 13, 2018

The following is from the FTB Home page regarding FTB wage garnishment.

Wage Garnishment Earnings Withholding Order

• Why did you garnish my income?
• What is the garnishment amount?
• How is a garnishment released?
• I filed bankruptcy. Does that stop my garnishment?
• Where can I get more information?

Why did you garnish my income?

If you have a delinquent balance, we may garnish the income owed to you by an employer or for a contracted service. Delinquent balances include taxes, penalties, fees, and interest, as well as non-tax debts owed to other government agencies and courts.

What is the garnishment amount?

Garnishments are 25% of a taxpayer’s disposable income. In certain circumstances, we modify a garnishment payment amount. When we do, we mail a garnishment modification notice, and we also fax a copy if requested.

How is a garnishment released?

We release a garnishment when the amount on the garnishment is paid. However, if an additional balance accrues on a delinquent account, we may issue another garnishment. If we issue a garnishment in error, we will release it as soon as we verify the error. We mail garnishment release notices, but we also fax them when requested.

If you think we issued a garnishment in error, call 800.689.4776 so we can analyze your account. If you are outside the U.S., call 916.845.4470.

I filed bankruptcy. Does that stop my garnishment?

If you have a wage garnishment, and you filed bankruptcy, call 800.689.4776 so we can analyze your account. If you are outside the U.S., call 916.845.4470.

Where can I get more information?

• • Garnishment information, calculations, etc.
  • Non-Tax Debt.
  • Civil Code of Procedures Section 706.074.

• R&TC Section 18673.

Anything other than the above will require the submission of financials (Form 4905). In instances where you can show and prove you cannot afford to pay the FTB anything at this time, they will place you on a 6 month hardship status and remove the wage garnishment. They will ask you to update your financial every 6 months in order to maintain hardship status. If your financials show you cannot afford to pay the full 25% amount of the levy, the FTB will reduce the levy appropriately. This must also be revisited every 6 months. You may request an installment agreement in the amount of the wage garnishment (or more), but you should be prepared to show why it is necessary to remove the levy, ie: your job will fire you,

security clearances, credit requirements, etc…)