Friday, January 2, 2015

3 Things to Expect from IRS Wage Garnishment

There are a lot of implications when you receive a notice saying that the IRS will garnish your wages. That action by the federal agency ensues after you haven’t paid taxes and you haven’t done anything to pay the debt. Your employer will have no choice but to allot a portion of your salary to this legal order. You can expect the following things after receiving the notice:

They can deduct a big chunk of your wage.

Although there are maximums or limitations to how much they could take and you can claim exceptions, the IRS can levy as much as 75% (or even more, sometimes) of your income. They would not consider your daily expenses, but base their calculations on your debt and on the tax code dictating the average amount of basic necessities.

Wage garnishment can affect other financial aspects in your life.

Aside from naturally affecting your expenditures, especially if you’re living from paycheck to paycheck, having wage garnishment on your plate can be detrimental to your reputation and credit score. Acquiring loans for your other needs would be more difficult, too.

You have rights.

Wage garnishment doesn’t have to ruin your life, and you must be conscious of your rights to successfully get past the challenge of this legal order. Get professional IRS wage garnishment help to negotiate a payment plan or settlement that would be sensitive to your needs.

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