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State Wage Garnishment

 

How Wage Garnishment works and how to stop it?

state wage garnishment is a letter from the state taxing authority to your employer. The letter orders a taxpayer’s employer to withhold money from each paycheck to send to the state.

 

How much money will be withheld, or garnished, from each paycheck?

State rules and regulations for a state wage garnishment differ from state to state. The garnishment letter will provide taxpayers’ employers with a formula for calculating the amount to withhold payment of a delinquent balance.

Generally, the state wage garnishment could be up to twenty-five percent of each paycheck. In some states, the court can withhold up to fifty percent from each paycheck for child support arrears and up to 60 % arrears if taxpayers are not supporting another dependent!

Click here to read more on taxes and child support

How long will my employer continue to garnish my wages?

The state wage garnishment letter will tell your employer how much of a delinquent balance you owe. Your employer will continue to garnish wages from each paycheck until that delinquent amount has been paid in full.

What if I am self-employed?

Self-employed taxpayers will have a state wage garnishment letter sent from the state’s behalf to each customer/Accounts Receivable. The letter will order each client in taxpayers’ Accounts Receivable to pay to the state. In some cases, payments may go up to one hundred percent to the state.

Does a customer or client owe you money?

Rules and regulations for a state wage garnishment differ from state to state. The state wage garnishment letter will provide taxpayers’ employers with a formula for calculating the amount to withhold payment of a delinquent balance.

Generally, state wage garnishments could be up to twenty-five percent of each paycheck. In some states, the court can withhold up to fifty percent from each paycheck for child support arrears and up to 60 % arrears if taxpayers are not supporting another dependent!

Delinquent balances include taxes, penalties, fees, and interest, any non-tax liabilities owed to other state government agencies and courts, such as Worker’s Compensation Insurance Premiums and Court Ordered Child Support.

Social Security and other legally mandated monies, such as disability, cannot be garnished by a state.

State tax wage garnishments take precedence over all other wage garnishments or levies. The only exceptions are court-ordered child support payments and federal tax liability. The IRS can also issue a wage garnishment letter to collect delinquent federal tax balances.

How can I stop State Wage Garnishment?

Generally, most states will not agree to stop a wage garnishment with a state installment agreement. However, most states will agree to lower the amount of the wage garnishment or modify it if a taxpayer can show hardship.

Coast One Tax Group can reduce the amount of a state wage garnishment if a taxpayer can show that they are in hardship. Our team can stop a state wage garnishment if a taxpayer’s state provides an Offer in Compromise to the state tax liability indicating that they qualify.

Coast One Tax Group is skilled in successfully navigating individuals through state wage garnishments. Our team consists of experienced attorneys, accountants, and Enrolled Agents representing taxpayers before state and federal taxing authorities. 

Our team will negotiate a resolution to your garnishment. Our goal is to resolve taxpayers’ state wage garnishment issues as quickly as possible. 

Call us today at 18002073405 or schedule a free consultation with our tax experts to get started.

What is a State Wage Garnishment?

A state wage garnishment is a letter from the state taxing authority to your employer.  The letter orders your employer to withhold money from each paycheck to send to the state.  How much money will be withheld, or garnished, from each paycheck?  The state rules and regulations for a state wage garnishment differ from state to state.  The state wage garnishment letter will provide your employer with a formula for calculating the amount to withhold.  Generally, the state wage garnishment could be up to twenty five percent of each paycheck!

How long will my employer continue to garnish my wages?  The state wage garnishment letter will tell your employer how much delinquent state tax you owe.  Your employer will continue to garnish wages from each paycheck until that amount has been paid in full.

What if I am self-employed?  If you are self-employed, the state will send a state wage garnishment letter to each customer/Accounts Receivable.  Does a customer or client owe you money?  The state wage garnishment letter will order each client in your Accounts Receivable to pay it to the state!  The state wage garnishment letter could order each client in Accounts Receivable to pay one hundred percent!

Delinquent balances include taxes, penalties, fees and interest.  Delinquent balances can also include any non-tax liabilities owed to other government agencies and courts.  However, Social Security and any other legally mandated monies, such as disability, cannot be garnished by a state.  State tax wage garnishments take precedence over all other wage garnishments or levies.  The only exceptions are court ordered child support payments and federal tax liability.  The IRS can also issue a wage garnishment letter to collect on delinquent federal tax balances.  Generally, most states will not agree to replace a wage garnishment with a state installment agreement.  However, most states will agree to lower the amount of the state wage garnishment if you can show hardship.

Coast One Tax Group is experienced in assisting individuals in successfully navigating through state wage garnishments.  We are a group of experienced attorneys, accountants and Enrolled Agents representing taxpayers before state and federal taxing authorities.  Coast One Tax Group will negotiate a resolution to your state wage garnishment.  Our goal is to resolve your state wage garnishment issue as quickly as possible.  Can Coast One Tax Group resolve your case with as little discomfort and disruption to you as possible?  Call or text or email Coast One Tax Group today for a free consultation!

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