Wage Garnishment in Texas
Wage garnishment happens for taxpayers who owe tax debt to the IRS, which is referred to as “continuous levy.” Before wage garnishment is implemented by the IRS, the taxpayer should have received tax debt notices directly from the Internal Revenue Services. If the notices are ignored, the IRS notifies your employer to withhold a major part of your paycheck automatically to pay the tax debt balance.
If this is something that you are experiencing, you have options at hand which we will discuss in this page.
Withholding order for taxes in Texas
Your employer will receive a Form 668-W, which is a notice by the IRS notifying them of wage garnishment. This notice requires the employer to withhold a certain amount of the employee’s wages as a contribution to pay the tax debt balance.
Schedule a Consultation
If you receive a Notice of Levy from the IRS, contact us and we will work with you on how to put an end to wage garnishment and work out an option that will favor you with the IRS. Our tax consultants will explain the process to you and also explore every available option to you. You must act fast. Contact Global Gate Taxes today to schedule a free consultation.
How Does Wage Garnishment Work in Texas?
Wage garnishment withholds a taxpayer wages through the employer to pay the amount owed. There are certain factors the IRS considers before withholding a taxpayer’s wages. The IRS can take up to 25% of the disposable income, considering the monthly income and the number of dependents.
It is important to speak with a tax expert to understand your options and help navigate this financial hardship.
What Can You Do About Wage Garnishment?
If you have received notices from the IRS to pay the tax debt, it is recommended to contact a tax professional and let them know your situation. Do not ignore the notices. If your wages are already being held by the IRS through your employer, contact us as soon as possible to provide you with a solution.
How Much of Your Wages Can Be Garnished in Texas?
About 25% of your disposable income will be garnished, considering your monthly income and the number of dependents.
What if wage garnishment is a financial burden?
If wage garnishment is a financial burden to you and your family, your number one option is to speak with a tax professional to help you navigate through this financial hardship.
Can Wage Garnishment be Negotiated in Texas?
Yes, wage garnishment can be negotiated in Texas depending on the situation. As a taxpayer you have the following options: installment agreement, offer in compromise, and currently not collectible. Through these relief options, you or the tax professional you hire has the opportunity to negotiate the terms and amount owed.
What Happens After Wage Garnishment is Paid in Full?
Once wage garnishment is paid in full, the IRS will notify your current employer that the debt has been fully paid.
Frequently Asked Questions
What percentages can a wage garnishment take in Texas?
25% of your wages will be garnished in the state of Texas. If you have received a notice, do not ignore it, you should contact a tax professional to help you fix your current tax situation. If ignored, your wages will be withheld by your current employer as instructed by the IRS.
How do I stop wage garnishment in Texas?
To stop your wage garnishment in Texas, you should first assess your options by scheduling a call with our tax professionals. You will have to qualify in order to stop your current garnished wages.
What happens if an employer ignores a wage garnishment in Texas?
If the employer refuses to garnish the wages in Texas, the employer will receive a penalty directly from the IRS.