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Does the IRS have to leave me with a “livable wage” if it garnishes my paycheck?

Posted by Michael S. Anderson | Dec 02, 2013 | 0 Comments

No, the IRS doesn't have to leave you a livable wage.

The IRS must only follow a table that determines how much money it must leave for you to live on each month.  

The amount that it must leave is small, and there are just 4 factors that play into the determination:

  • Whether you are married
  • The number of exemptions you should claim
  • Whether you are older than 65
  • Whether you are blind

For example:

If you are married filing a joint return and you get paid on a monthly basis, and take 2 exemptions, the IRS will leave you 1666.67 to live on.

It won't matter if you make $2000.00 per month or $20,000.00 per month, the IRS will leave you 1666.67 to live on each month until the debt is paid off or you do something else to deal with the debt like:

a.              Arrange a payment plan or non-collectible status situation based on another set of budget figures.

b.              Propose an Offer in Compromise

c.              File a Bankruptcy

Obviously the IRS doesn't use the IRS Publication 1494 to collect the debt.  It uses it to force you to do something about the debt.  

About the Author

Michael S. Anderson

Michael Anderson has been representing Arizona clients with tax debt problems for two decades and has helped his clients eliminate millions of dollars in tax debt. His tax debt practice is limited to helping individuals and the self-employed who have serious IRS problems.

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