| If the IRS puts a levy on my paycheck how much can | | | | the IRS leave enough money on my paycheck to let |
| they take out of my wages? | | | | me pay my other creditors? |
| Here's the formula that the IRS uses to figure out how | | | | This goes back to those "necessary expenses." The |
| much of your wages to take. By the way this can be | | | | IRS doesn't consider debts to other creditors to be |
| up to 75% of your total take home pay. | | | | necessary; they want you to pay them back first! |
| The formula is a follows: The IRS applies the | | | | However if you can prove that you're using your credit |
| exemptions from what you filled out on your W-4 | | | | cards to pay for necessary expenses like food and |
| form. The IRS then adds in your standard deduction | | | | utilities they will consider making an exception. |
| based on your filing status, plus any other deductions. | | | | How long can the IRS levy my wages? They can't |
| The IRS also takes into account any necessary | | | | take the money forever...can they? |
| expenses you have. What is left is what the IRS | | | | Actually the IRS can levy the money from your |
| applies to your debt each pay period. | | | | paycheck until the debt is paid, or you enter into an |
| I need enough money to feed my family and keep the | | | | alternate payment plan with the IRS. |
| lights on? What does the IRS consider "necessary | | | | I'm a divorced father and I have to pay child support |
| expenses" when they levy your wages? | | | | each month. Since I could go to jail if I don't pay the |
| Necessary expenses cover the absolute basic costs | | | | child support can the IRS still levy my wages? |
| of living. They include: food, utilities, basic clothing, | | | | The IRS will still levy your wages, but child support |
| materials for school, and tools for work. | | | | payments are exempt. That means they'll leave you |
| Any luxury costs like sending your kids to private | | | | enough, in addition to your necessary expenses, |
| school are not considered necessary. | | | | enough to pay your child support. |
| My debt to the IRS isn't the only debt that I owe. Will | | | | Now you have the smoking gun...Use it! |