1. What is a Wage Levy?

A wage levy, also known as a wage garnishment, is a legal procedure where a portion of an employee's earnings is withheld by the employer for the payment of a debt. The IRS may levy wages to collect unpaid taxes.

2. How Does the Calculator Work?

The calculator uses the amount specified by the IRS and converts it to a monthly amount based on your pay period:

Where:

• Weekly pay: Multiply by 4.33 (weeks in a month)
• Bi-weekly pay: Multiply by 2.166 (pay periods in a month)
• Monthly pay: Use amount as-is

3. Importance of Wage Levy Calculation

Details: Understanding your wage levy amount helps in financial planning and negotiating payment arrangements with the IRS if needed.

4. Using the Calculator

Tips: Enter the amount specified in your IRS notice and select your pay period. The calculator will estimate your monthly levy amount.

5. Frequently Asked Questions (FAQ)

Q1: How much can the IRS levy from my wages?
A: The IRS uses a formula based on your filing status, dependents, and standard deduction to determine exempt amounts.

Q2: Can I stop a wage levy?
A: Yes, by paying your tax debt in full, entering an installment agreement, or proving financial hardship.

Q3: How long does a wage levy last?
A: Until the debt is paid, you make other arrangements, or the collection statute expires (usually 10 years).

Q4: Does the employer charge fees for processing a levy?
A: Employers may deduct a small administrative fee from your paycheck in addition to the levy amount.

Q5: Can I negotiate the levy amount?
A: You may be able to negotiate a lower levy amount if you can demonstrate financial hardship.