| There are many ways to avoid wage | | | | will be recalculated and the amounts reflected |
| garnishments from happening, but once a | | | | based upon that information. |
| consumer is faced with a wage garnishment, it is | | | | Can I contest the garnishment or do I have to |
| very important that they become well versed in | | | | accept it? |
| the federal wage garnishment laws that are | | | | As with any federal wage garnishment laws, |
| designed to protect them. People can enter into | | | | there are exceptions as to what income is |
| wage withholding situations voluntarily with the | | | | taxable or not and you have rights to contest |
| IRS, and not all wage garnishments are the result | | | | withholding of certain types of income. This |
| of a court injunction. These laws have | | | | income is as follows but not limited to the |
| amendments and clauses therein to protect the | | | | following: child support, veterans pay, government |
| average consumer from being left completely | | | | pension payments, unemployment benefits, public |
| destitute and financial destruction. The Consumer | | | | aid, funds in a community or joint account shared |
| Credit Protection Act, Title III, expressly limits the | | | | with others including a spouse, and various other |
| amount of income that is subject to federal | | | | types of income provided to you by the state. In |
| withholding and prohibits an employer from taking | | | | order to protect this income from garnishment |
| adverse action against an employee for having a | | | | actions you will need to consult with a tax |
| wage garnishment. | | | | professional and have them file a document with |
| Understanding laws surrounding wage garnishment | | | | the courts within 28 days of receiving your |
| The only income that is subjected to garnishment | | | | garnishment notice. |
| is the after-tax income. The IRS does not garnish | | | | What else can the IRS do besides take payroll |
| the income based upon the gross earnings. | | | | wages? |
| Taxable income would include, state, local, and | | | | It is important to note that if you owe money to |
| federal taxes, as well as any deductions made for | | | | the IRS, you need to do the best you can to |
| health insurance, union dues, 401K or retirement | | | | settle it; otherwise the IRS may garnish your |
| deductions, previous wage garnishments, child | | | | wages or levy your bank account. Federal laws |
| support, social security, savings bonds or charity | | | | not only protect you as a consumer, but also |
| deductions. Also, all types of income being | | | | protect the IRS and state agencies. You may be |
| withheld for the purpose of an employee loans | | | | able to avoid legal action being taken by |
| are also exempt according to federal wage | | | | contacting the IRS and working with them to |
| garnishment laws. | | | | come to some type of agreement, thus avoiding |
| How much money can they take from me? | | | | wage garnishments or bank levies altogether. It |
| Federal wage garnishment laws require that only a | | | | should be noted that the IRS has a limited |
| certain amount of income may be withheld in a | | | | amount of time to collect an outstanding tax debt. |
| certain pay period. The figures set up are as | | | | Certain taxpayer actions may extent the statute |
| follows: | | | | of limitations and allow the IRS more time to |
| - 25% of the employees after tax income or the | | | | collect. You must be aware the IRS will continue |
| amount by which the after tax income is thirty | | | | to seek withholdings until the debt is paid in full. |
| times more than the federal minimum wage | | | | There are no laws around that are going to |
| - Minimum wage standards vary state by state | | | | protect you if you run and try to hide from the |
| and the weekly garnishment amount cannot go | | | | IRS, so it's best to face it head on and be |
| over these two figures. | | | | prepared. |
| This figure is based upon a person who receives | | | | For more information about tax lawyer please |
| a weekly pay check, however, if you are paid | | | | click here. |
| bi-weekly or monthly, then the wage garnishment | | | | |