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tax tips

Watch: How Much Can the IRS Take Out of My Paycheck

Mark Dutton Discusses How Wage Garnishment Works and How Much the IRS Can Take from Your Paycheck

Video Transcript

The IRS is limited in the amount that they can garnish out of a paycheck by a table that the IRS creates, which allows you a certain amount of money to exist without going into abject poverty.

It’s based on the number of people in your home and how many people you’ve claimed on your tax returns as dependents – and also if you’re over 65 and/or blind.

The amount that they can take out is dependent on how often you get paid and those numbers of exemptions.

The IRS garnishment is debilitating. The amount of money that they leave for you to live usually isn’t enough for you to survive.

Whereas other garnishments are based on your net take-home pay – so Indiana, for example, has its wage garnishment statue, which is 25% of your net pay, what you would take home. The creditor would take only 25% of that take-home pay.  The IRS doesn’t deal with how much you are paid, they say we are going to leave you this much.

Dutton Legal Group – Indiana’s Tax Resolution Law Firm

Dutton Legal Group helps self-employed people and small businesses solve their tax problems. Our goal as experienced tax attorneys is to assist you in finding an immediate, cost-effective answer to your tax challenges. We provide a variety of tax services from balance resolution and return preparation to wage garnishment relief and audit assistance. Make Dutton Legal Group your next call at 1-800-334-0255 or send an email to request a free consultation. Trustworthy and affordable, for over 15 years.

wage garnishment

Watch: How to Stop a Wage Garnishment

Attorney Mark Dutton Shares How You Can Stop a Wage Garnishment

Video Transcript

So how would one go about stopping a wage garnishment? You can stop a wage garnishment with the IRS by entering into some sort of resolution with them, typically an installment agreement – that’s a payment plan with the IRS. That stops a garnishment.

There are some prerequisites to be able to enter into an installment agreement with the IRS however. One is that you are compliant. And by compliant, it means you filed all the tax returns that the IRS is requiring you to file. Typically that is the past 6 years. If you have filed your tax returns for the last 6 years, you’re considered compliant by the IRS.

Another area of compliance is, if you’re self-employed, that you are making estimated tax payments. So those quarterly tax payments going toward this year’s – the current year’s – potential liability.

Dutton Legal Group – Indiana’s Tax Resolution Law Firm

The Dutton Legal Group helps the people and businesses of Indiana navigate ever-changing State and Federal tax codes. Our goal as experienced tax attorneys is to assist you in finding an immediate, cost-effective answer to your tax challenges. We provide a variety of tax services from balance resolution and return preparation to wage garnishment relief and audit assistance. Make Dutton Legal Group your next call at 1-800-334-0255 or send an email to request a free consultation. Trustworthy and affordable, for over 15 years.