Are Your Wages Currently Being Garnished? Babbitt Tax Law Can Help
If you have failed repeatedly, despite collection attempts, to pay your tax bill with the IRS chances are that you may have ended up on the wage garnishment list. This means that they have resorted to no longer coming to you asking for payment and instead they file with your employer and take it from your paycheck before you receive it until such time as the entire amount owed is claimed.
The set limit for Federal wage garnishment is no more than 25% of what they consider to be your disposable income or the amount that your income exceeds 30 times the federal minimum wage. This can be a good chunk that many people really cannot afford despite the IRS calculations that say they can.
Disposable income is calculated by subtracting required deductions from your paycheck. Required deductions include federal and state taxes, state unemployment insurance taxes, Social Security, and required retirement deductions.
An example of how wage garnishment is calculated
The federal minimum hourly wage is $7.25 per hour. If you make $600 per week after the required deductions, 25% of your disposable income is $150. The amount that your income exceeds 30 times $7.25 is $382.50 ($600 – 217.50). This means the most that can be garnished from your weekly paycheck is $150.
Wages may also be garnished for unpaid overdue student loans as well as child support or alimony.
If you have IRS Tax Garnishment issues Babbitt Tax Law in Bonita Springs, Florida can help. Tax relief is just a phone call away. We offer a free consultation in which one of our tax attorneys will sit down with you and go over your individual situation. At that time, we will let you know what we believe we can do for you and approximately how much we might be able to negotiate your debt down or reduce the amount retrieved per check.
Tax law is ever changing and can be confusing for the average taxpayer. The IRS is not friendly or easy to reach. Making sure you do your diligence the right way with every contact is key to getting resolution. We have a successful track record of getting our clients results.
If you have received garnishment letters from the IRS or your pay is already being garnished don’t wait. Call Babbitt Tax Law today at 239-300-9492. Visit www.Babbittaxlaw.com to learn more.