Glossary

Wage garnishment (IRS wage levy)

An IRS wage levy is a continuing levy on your paycheck that requires your employer to send the IRS everything above an exempt amount based on your filing status and dependents, every pay period, until it is released.

How it works

An IRS wage levy requires your employer to send the IRS everything above an exempt amount, based on filing status and dependents, every pay period until the levy is released. No court order is needed and the exempt amount is small. Release requires contacting the IRS and putting a resolution in place, usually an installment agreement or hardship status.

Why it matters

A wage levy is the most disruptive collection action and the one that most often brings people to a tax attorney.

Related: tax levy. Read more: how to stop IRS wage garnishment.

Guides that cover wage garnishment

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Definitions are general information, not legal advice, and may not reflect the most recent changes in law.

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