Wage Garnishment

What Is Wage Garnishment?

A wage garnishment is when the IRS or a state agency requires your employer to withhold a portion of your paycheck to satisfy unpaid taxes. It continues until the balance is resolved or the garnishment is officially released.

Who Can Garnish Wages? Your wages can be garnished by the IRS, state tax agencies, or a court order for obligations such as unpaid taxes, child support, or federal student loans.

How Much Can They Take? The amount taken depends on the type of garnishment. The IRS typically withholds a portion of your paycheck based on your income, filing status, and number of dependents. State agencies and courts follow similar percentage limits, but in most cases, you must still receive enough to cover basic living expenses.

Common Reasons for Wage Garnishment

The IRS or other agencies may garnish wages when certain financial obligations remain unpaid after multiple notices. Common reasons include:

• Unpaid federal or state taxes

• Past-due child support or alimony

• Defaulted federal student loans

• Unpaid court judgments or legal fines

• Back taxes owed by a business owner or self-employed individual

In most cases, wage garnishment is a last-resort action after other attempts to collect have failed. Acting quickly to set up a payment plan or request IRS relief can often stop or prevent the garnishment before it affects your paycheck.

Signs That Your Wages May Be Garnished Soon

Before the IRS or another agency begins garnishing your wages, they’ll usually send several warnings and notices. Recognizing these signs early can help you take action before your paycheck is affected.

Common warning signs include:

• Receiving a Final Notice of Intent to Levy or Garnish Wages from the IRS

• Getting Certified Mail or letters demanding payment from the IRS or state tax agency

• Repeated IRS collection notices referencing unpaid taxes or missing filings

• A Notice of Federal Tax Lien filed against your name or business

• Contact from your employer or payroll department about a potential wage order

If you’ve received any of these notices, it’s important to act immediately. Our licensed tax professionals can contact the IRS on your behalf, request a levy release, or set up a payment plan to stop wage garnishment before it begins.

Can You Stop Wage Garnishment? Here’s What to Do

To have a wage garnishment removed, you’ll need to:

• Contact the IRS to set up a payment agreement or request a financial hardship review

• Negotiate relief options such as a streamlined installment agreement or Offer in Compromise

• Work with a licensed tax professional who can handle communication and request an immediate release of the garnishment

Our attorney-led team can contact the IRS on your behalf, help you qualify for relief, and stop garnishment activity so you can keep your full paycheck and regain financial peace of mind.

Set Up a Payment Plan

If you’re unable to pay your full tax balance right away, the IRS offers payment plan options that let you make affordable monthly payments over time. Establishing an installment agreement can help you stay compliant with the IRS and stop actions such as wage garnishments or bank levies.

There are several types of IRS payment plans available, including short-term extensions, streamlined installment agreements, and custom payment options based on your financial situation.

Our licensed tax professionals can help you determine the best plan, complete the application, and work directly with the IRS to ensure your agreement is accepted and collection activity is paused.

Apply for Hardship Relief

IRS hardship relief allows taxpayers facing financial challenges to temporarily pause collection actions such as wage garnishments or levies. If approved, the IRS places your account in Currently Not Collectible status, giving you time to regain financial stability without additional pressure.

Get Professional Assistance From Five Star Tax Resolution

The licensed experts at Five Star Tax Resolution can help you stop wage garnishments, communicate directly with the IRS, and create a plan that protects your income while restoring your financial peace of mind.