A wage garnishment is a legal seizure by the IRS of a taxpayer’s wages to satisfy a tax debt. A wage levy is continuous unless the levy is released or the tax debt is paid in full.
By the time, the IRS issues a wage garnishment, the taxpayer would have received several notices from the IRS.
The IRS will issue a levy only after these three requirements are met:
Employers generally have at least one full pay period after receiving a Form 668-W, Notice of Levy on Wages, Salary and Other Income before they are required to send any funds from their employee’s wages. The amount of wages that attach to the levy is calculated using several factors:
For example, a single taxpayer who is paid biweekly and claims two exemptions (including one for the taxpayer) has $550.00 exempt from levy. This means that the IRS will take all the funds above $550.00, leaving a taxpayer $550.00 to pay for their necessary living expenses. Since the wage levy is continuous, unless it is released or the balance due has been paid in full, a taxpayer will receive $550.00 every 2 weeks to pay for their expenses.