When an individual has acquired debt that he/she is not able to pay, creditors may initiate garnishment of wages. As a result, a certain portion of an individual’s income can be taken in order to repay creditors. There are many states that maintain wage garnishment laws. However, the United States government has also established federal wage garnishment laws.

If the federal wage garnishment laws result in the deduction of fewer funds from an individuals income, then the federal legislation is to be employed. The amount that is deducted from an individual’s wages often depends upon the extent of his/her income. In most instances, only 25 percent of an individual’s income can be garnished. This is usually a weekly deduction, and therefore, 25 percent of an individual’s weekly income can be garnished. 

The Federal Wage Garnishment Law, Consumer Credit Protection Act is the legislation that is responsible for regulation the portion of an individual’s income that can be garnished. This legislation was established in order to protect consumers from extensive and unreasonable wage garnishment. The garnishment of wages can severely impact an individual’s ability to support him/herself and his/her family. Therefore, it is important for an individual to understand his/her rights, outlined in both state and federal wage garnishment laws.

The established legislation protects an individual’s entire personal earnings, including commission, salaries, hourly wages, and any bonuses that he/she may receive. Retirement funds and pension plans are also protected under federal wage garnishment laws.

Most residents of the United States are required to pay taxes to the Internal Revenue Service. The two primary types of taxes that frequently cause complications for individuals throughout the nation are property taxes and income taxes; however, there are additional types of taxes that must be paid.

If an individual fails to pay the taxes that he/she owes the IRS, the IRS has the right to initiate aggressive tactics to attain these funds. One technique that the IRS frequently employs is IRS wage garnishment. The IRS has the authority to garnish wages in order to obtain the taxes that an individual owes. This process can occur whether an individual earns a salary or hourly wages. The amount that the IRS levies from an individual's income will often depend on how much he/she earns. 

IRS wage garnishment will not be a surprise when it occurs. The IRS will only use this collection method after an individual has been issued repeated warnings, and letters regarding their debt and the necessary payment. If an individual fails to respond to these warnings and does not pay the taxes that he/she owes, the IRS can garnish wages.

Generally, the final warning that is issued by the IRS will give an individual less than one month to pay his/her debt. If an individual does not have access to the funds necessary to pay his/her debt, he/she can contact the IRS to arrange a payment schedule. However, if no action is taken by the debtor, IRS wage garnishment may be initiated.

A significant portion of his/her income will be levied by the IRS to compensate for the taxes that he/she failed to pay. Therefore, warnings issued by the IRS should never be left unresolved.