Your Rights When Wages Are Garnished

Understanding Wage Garnishment in Texas

It is possible to lose your wages to your creditor, depending on the situation, through wage garnishment. Wage garnishment is when your employer withholds a portion of your wage in order to pay off your debt. Owing back taxes to the IRS is one of the reasons why your wages can be put at risk. However, even if your IRS problems result in wage garnishment, there are certain limits that must be respected. A wage garnishment lawyer is best placed to help you protect your rights when facing wage garnishment in Texas or any other place.

IRS Wage Garnishment

When you owe money to the IRS, the agency takes action to guarantee payment. One of the methods the IRS relies on is wage garnishment. Unlike creditors, the IRS doesn’t require a court order to get a hold of your wages. This means that as long as you owe back taxes, your wages can be at risk. However, your employer is required to give you a copy of any IRS notification they receive about wage garnishment. If you are dealing with IRS back taxes and tax problems, seeking a problem resolution early can protect you from wage garnishment.

Related Blog: A Brief Guide to Understanding IRS Tax Appeals

How Much Of Your Wage Can The IRS Take?

While the IRS can garnish your wages, the amount they can deduct towards debt payment varies from person to person. The law places limits on how much your wage can be affected. A lot of factors influence the exact amount of money that the IRS will take. The number of dependents you have and your standard reduction account are the main ones.

The IRS will only allow you to keep the amount necessary to cover your family’s basic needs. In some cases though, the IRS can garnish well over half of your wage. A wage garnishment lawyer can work with you to best handle the situation and represent your best interests.

Other Wage Garnishment

Creditors can also take part in wage garnishment. However, unlike the IRS, creditors require a court order to garnish your wage, unless you owe child support or student loans. Even when a judge rules against you, the law protects you by setting a limit on how much of your wage can be taken by creditors. Your wage can only be garnished by 25% of disposable earnings following mandatory deductions or any excess of 30 times your minimum wage. If you have several debts and therefore several garnishments, protections may vary. A wage garnishment lawyer can help you figure out the best way to handle the situation.

Related Blog: Understanding the Various Types of IRS Levies

Bottom line

Your wages can be garnished when you owe back taxes, child support, student loans or other types of debt. When your wages are garnished, your employer withholds your earnings in order to pay back your debts. However, even when your wages are garnished, there are limits on how much they can take. A wage garnishment lawyer can help you protect your rights and find the best IRS problem resolution. The Nick Nemeth’s tax law attorneys will help you work through all types of tax problems, from wage garnishment to IRS bank levies. Schedule a free consultation today calling us at (972) 484-0829.