Whats the Minimum You Can Live On?
How much money do you need every week to survive?… if you owe unpaid taxes to the IRS and they garnish your paycheck to get their money, I hope your answer to that question is “not much”…
Are you single with 2 kids (exemptions)? I hope you can live on $299.04* per week…because that’s all the IRS is going to leave in your paycheck if they garnish your wages! No kids (exemptions) to claim? The IRS will leave a whopping $168.27* in your weekly paycheck…and take the rest.
See IRS Publication 1494, Table of Figuring Amount Exempt from Levy on Wages, Salary and Other Income (Forms 668?W(c)(DO) and 668?W(c)), to determine the amount of earned income exempt from levy. I could go on and on, but I think you see my point. The IRS has already conveniently “pre-decided” how much money they will leave in your paycheck…they have a nifty little table that conveniently tells you how much you get to keep. Of course, this doesn’t take into consideration the least bit how much you need every week to pay your mortgage, your car payment, groceries or any of life’s other necessities. They’ve already figured how much they’re going to leave you and it’s up to you to figure out how to live on it.
Sound Like a Recipe for Financial Disaster? You Bet. I look at these numbers and I’m just blown away. How is a person with a mortgage payment of $750 a month supposed to live on $168.27 a week? That’s only $673.08 per month…? As you can see, wage garnishments could be financially devastating for just about anyone. Plus, you don’t want the IRS notifying your employer that they will be taking a chunk of your money every week, do you? Sounds more than a little embarrassing, doesn’t it?
A Nightmare Scenario…
Say you earn $1000/week, and you’re single with no kids. You owe the IRS $20,000 in back taxes. The IRS comes in and takes $831.73 per week from your paycheck, leaving you a whopping $168.27 to live on.
At this rate, it would take 6 months to pay off your $20,000 debt (actually longer that this, since I haven’t included penalties and interest). Can you live on $168.27 a week for 6 months? Could you pay your house payment? Your car payment?
How to Get Rid Of a Garnishment.
If you suspect that the IRS is about to start “clipping your paycheck” and leaving you without a livable wage, it’s time to take action and stop it while you still can.
Call Florida Tax Lawyer Mary E. King at (941) 906-7585 to discuss you options and take control before the IRS does!
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posted by Mary E. King on Tue., Sep 27th, 2011 in Florida Tax Attorney Legal Services Tax Law Tax Solutions Wage Garnishment |
