An IRS wage levy, often called a garnishment, sends part of every paycheck to the IRS until you pay, set up another way to pay, or the levy is released. Part of your pay is exempt, based on your standard deduction and dependents.
Who it fits
People whose employer got an IRS levy on their wages.
- Who it fits
- Paycheck garnished
- Cost
- No fee. Return your Statement of Dependents and Filing Status within 3 days.
- IRS form
- Statement of Dependents and Filing Status (from your employer)
What to know first
The levy takes part of each paycheck until you pay, make other arrangements, or the levy is released.
The exempt amount is based on your standard deduction and your number of dependents. Publication 1494 tells your employer how to figure it.
Your employer gives you a Statement of Dependents and Filing Status. If you don't return it in 3 days, you are treated as married filing separately with no dependents.
A bonus paid on its own can go entirely to the IRS, because the exempt amount was already paid that pay period.
The IRS will release the amount you need for court ordered child support that was ordered before the levy.
The IRS must release a levy if you set up a payment plan that does not allow it to continue, or if it causes economic hardship.
Common questions
Can the IRS take my whole paycheck?
Not all of it from one job. Part is exempt. But if you have other income, the IRS may apply the exemption there and take 100% from a certain employer.
Does the IRS warn me first?
Usually yes. The IRS sends a notice of intent to levy and your right to a hearing at least 30 days before.
Source: IRS: What is a levy?
How do I stop it?
Call the IRS number on the levy. Paying in full, a payment plan, or showing hardship can lead to a release.
Results depend on your situation. Not every case qualifies.
