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4 Reasons the US Government Can Garnish Your Wages


Contributed by Search House Media
October 22, 2018



Wage garnishment can be a very scary problem to deal with. But what is wage garnishment, exactly? Wage garnishment occurs when a court or government agency requires your employer to withhold a certain amount of your wages per paycheck, and send that amount to your creditor. The amount of your wages that are garnished depend on the type of debt, income levels, and many other factors.

There are certain types of debt that are subject to wage garnishment from the government. Read on to learn 4 reasons the US Government can garnish your wages.

4 Reasons the US Government Can Garnish Your Wages

  1. Child Support and Alimony

    In 1988, a law was passed that requires all child support orders to automatically include a wage withholding order. Simply put, if you are ordered to pay child support, your wages can be garnished without any additional action taken by the court.

    If you fall behind on child support and, or alimony payments, you are at risk for wage garnishment. Generally, the wage garnishment limits for child support and alimony debts are significantly higher than the limits for other types of debt. Federal law allows the US government to garnish up to 50 percent of your disposable earnings if you have a spouse or child who is not subject to the wage garnishment order. Disposable earnings are your gross wages minus deductions required by law.

    If you do not have another spouse or child to support, you are at risk of having up to 60 percent of your disposable earnings garnished. If you are behind 12 weeks or more, this limit can be increased an additional 5 percent.
  2. Unpaid Income Taxes

    Not paying your income taxes is another reason the US government can garnish your wages. While filing income taxes can often be overwhelming and confusing, adding the IRS hounding you for the money you owe them only amplifies that stress. Tax Crisis Institute can help you file your income taxes on time. They can also help with wage garnishment relief!

    If you owe back taxes to the IRS or local government, the government can garnish your wages without even having to get a court order against you. The level of wage garnishment inflicted by the IRS for back taxes is dependent upon the number of dependents you support and the amount of deductions you can take. Law also varies from state to state on how much of your wages local governments can garnish for unpaid income taxes.

    If you are facing wage garnishment due to unpaid income taxes, please contact Tax Crisis Institute today. The family owned and operated business has decades upon decades of experience in the tax industry. They can help get your wage garnishment lifted, while helping you get back on track with your tax payments. Contact them today!
  3. Student Loans

    Many people do not realize that falling behind on student loan payments can lead to wage garnishment. If you have federal student loans, the United States Department of Education, or any of the debt collection agencies that work for it, can again garnish your wages without the need for a court order. With this type of wage garnishment, the garnishment amount is limited to 15 percent of your disposable earnings, or the amount by which your weekly disposable wages exceed 30 times the federal minimum wage – whichever is less.
  4. Court Judgments

    Court judgments against you can also lead to wage garnishment. If you find yourself in debt that you are unable to pay back, you are at risk of being sued by the creditors that you owe money. This includes credit card debt, medical debt, and more. In order for these institutions to garnish your wages, they must first sue you and obtain a court order before they can start garnishing your wages. Unlike federal and many local governments, these entities cannot immediately garnish your wages if you default on your payments.

    If the creditor does obtain a court order to garnish your wages, federal laws currently limit the amount they can take. Creditors cannot garnish more than 25 percent of your disposable earnings, or the amount by which your weekly disposable income exceeds 30 times the federal minimum wage – whichever is lower. However, in these circumstances, it is vital to know that each state has its own laws, and your state may allow for stricter limits on these figures.

Wage Garnishment Assistance

If you have found yourself suffering under the weight of wage garnishment, it is important to get help now. You should also know that you cannot be fired, disciplined, or retaliated against in any way by your employer because your wages are being garnished.

At Tax Crisis Institute, the team has over 30 years of experience in the tax industry. They have handled everything from the smallest tax hiccup, to massive tax cases, and everything in between. No tax case is too big or to small for the experts at Tax Crisis Institute.

Wage garnishment can be both financially and mentally challenging. Do not try and take on this challenge alone. The experts at Tax Crisis Institute can help you find relief from wage garnishment. We have four locations with incredible staff that are knowledgeable of the tax industry, and fierce in their fight for the clients’ best interests. Contact Tax Crisis Institute today to get started on the road to tax relief. We have locations in Bakersfield, Orange County & Los Angeles, California, as well as in Las Vegas, Nevada. TCI is here to help you face any tax issue, whether it is wage garnishment, back taxes, or anything in between. Do not delay, contact TCI today! info@taxcrisisinstitute.com or (661) 837-1100

 

Tags: tax | Tax | court | law | United States | interest | Education | Education | business

 

 

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