How IRS Wage Garnishment Works
A wage levy is continuous, meaning it takes a portion of each paycheck until released. The IRS calculates your exempt amount based on filing status and number of dependents; everything above this can be taken.
- Continuous levy—affects every paycheck
- Exempt amount based on standard deduction + personal exemptions
- Employer must comply within one pay period
- Takes effect until debt paid or levy released
How Much Can the IRS Take?
The IRS uses Publication 1494 tables to determine exempt amounts. For a married person filing jointly with two dependents, only about $1,100-1,300 per week may be exempt. The IRS can take everything above this amount—far more than the typical 25% limit for other creditors.
How to Stop Wage Garnishment
Several options can release or reduce the levy amount.
- Pay the tax debt in full
- Set up an installment agreement
- Prove financial hardship (can't pay basic expenses)
- Submit an Offer in Compromise
- File for Currently Not Collectible status
- Challenge the levy through CDP hearing
Employer Obligations
Your employer must comply with an IRS wage levy notice. They cannot fire you for having a levy, but they must begin withholding within one pay period of receiving the notice.
Frequently Asked Questions
Full release takes negotiation, but you may be able to reduce the amount quickly by proving hardship. Contact the IRS or a tax professional immediately to discuss your options.
Unlike other creditors limited to 25%, the IRS can take everything above your exempt amount. This could be 50-70% or more of your paycheck depending on your income and exemptions.
Yes. If the levy creates financial hardship preventing you from meeting basic living expenses, you can request the IRS reduce the amount taken. Complete Form 433-A to demonstrate your financial situation.
Generally yes. Once an installment agreement is approved, the IRS should release the wage levy. Continue making your agreement payments as scheduled.
No. Federal law prohibits employers from firing employees because of a single wage garnishment. However, this protection may not apply if you have multiple garnishments from different creditors.