IRS Wage Garnishment

Before the IRS takes any action to collect money from you, it has to go through certain steps to make sure you get your collections due process rights. That means the IRS can’t take money out of your paycheck without telling you first. You’ll get letters from the IRS telling you that you owe money. The IRS will send you an LT 11 or Letter 1058 if you don’t answer or pay the balance. This letter tells you that if you don’t pay the amount you owe, the IRS will take steps like a levy or lien to get the money.

You have 30 days to reply if you receive a letter that reads, “Final Notice of Intent to Levy and Notice of Your Right to a Hearing,” or something similar. In response, you can ask for a hearing or settle the debt. The IRS has 30 days to react, after which time, the IRS  has the right to garnish your salary or take money from your bank accounts.

How Much of Your Wages Can the IRS Take

The IRS can’t take your whole paycheck, but it’s not limited by a federal law that applies to other creditors and lenders who get court orders to take money from borrowers’ paychecks. The IRS figures out on its own how much of your take-home pay can be garnished and how much of your income can’t be. The calculation is based on your filing status, the number of people who depend on you, and the standard deduction. In the IRS’s exemption table, you can find the amount of your exemption.