The Wage Levy Formula – How Does the IRS Know How Much to Take
Quick and Dirty…The IRS can use a wage garnishment, sometimes called a wage levy to get money straight from your gross pay check in order to payoff your IRS tax debt. There seems to be some mystery and misconceptions’ surrounding the wage garnishment and there is some straight information on how a wage garnishment works. How do they know what to take out? The IRS uses the following basic formula to figure out how much they’re going to take out of your paycheck. The formula is a follows: the amount deducted from you total expenses and filing status that you filed out on your W-4 form. The IRS then adds in your standard deductions, and what’s left beyond that is what the IRS applies to your debt each pay period. The IRS will consider taking out less from your check if you can prove that you need additional funds to pay the most basic bills. Also court ordered child support is exempt from being levied.
