Wage garnishment can significantly impact you and your family’s financial stability. It is incredibly important to understand federal and Florida wage garnishment laws and what protections you have. While it can be overwhelming, you have options, even when your wages are being garnished by tax agencies like the Florida Department of Revenue (DOR) or the Internal Revenue Service (IRS) for unpaid taxes.
The Basics of IRS Wage Garnishment
Wage garnishment occurs when a creditor takes a portion of your wages to pay back the debt you owe. Your employer will receive a request from a creditor to withhold the amount, and they are required to do so.
Florida’s median household income in 2023 was just over $73,000. Wage garnishment can severely impact your financial stability. There are federal limitations on how much most creditors can take from your wages, but some types of debt, like child support, spousal support, and unpaid taxes, have fewer restrictions.
Most creditors need court approval to do this, but the IRS does not. In 2024, the IRS sent almost 313,800 notices to third parties for a levy. This included notices sent to employers for wage levies.
If the IRS garnishes your wages, the agency has more leeway compared to other creditors. There isn’t a set percentage that the IRS cannot exceed. Instead, the IRS could choose to levy wages, except for those required for standard deductions and the minimum personal exemptions allowed. The IRS can also take other collection actions, such as placing liens or levies on your property.
How Can You Stop Wage Garnishment in Florida?
The first and most effective way to stop wage garnishment is to pay the debt. When the creditor, including the DOR or IRS, processes the payment, collection actions will stop. However, many people cannot do this. If you do not have the financial ability to pay your debt, you may be able to mitigate or stop wage garnishment through methods like:
Florida Head of Household Exemption
If you are the primary financial supporter of a child or dependent living in your household in Florida, then you could apply for the head of household exemption. As of 2023, 19% of the population in Florida was under the age of 18, and 13.5% of the population lived with disabilities. Your disposable earnings each week of $750 or less cannot be garnished. If you have disposable income higher than this, you must agree to garnishment in writing.
You have to apply for the exemption shortly after you receive notice of garnishment. This exemption would likely not apply to federal taxes, but it does apply to state tax wage garnishment and other creditor garnishments.
Garnishment Negotiation
For tax and non-tax debt, you could reach out to the creditor directly to negotiate the amount being garnished from your wages. This can limit the financial hardship you face while still ensuring the debt is being paid.
Debt Negotiation
When the garnishment is done by the IRS or the DOR, there are more options available to you to resolve the debt you owe, and potentially pause garnishment. Penalty abatement can limit the overall debt you owe the IRS, while Currently Not Collectible status or an installment agreement can give you more time to pay your debt. An offer in compromise enables you to resolve your entire debt for less than what you owe the IRS.
It is much easier to navigate the options of debt settlement with an experienced Florida wage garnishment attorney representing your interests.
Bankruptcy Filing
As a last resort, you could file for bankruptcy. Specific types of bankruptcy can stop wage garnishment by placing an automatic stay on collection actions. However, bankruptcy is a very serious choice to make and can significantly affect your financial circumstances. It’s crucial that you review this option with knowledgeable legal guidance.
FAQs
Q: What Are the Exemptions for Wage Garnishment in Florida?
A: In Florida, wage garnishment can affect most types of income you gain, but there are state options to prevent creditors from garnishing your wages. If you qualify for the head of household exemption, then any disposable weekly earnings $750 or less cannot be garnished. You must agree in writing to the garnishment of income higher than $750. You have to apply for this exemption to receive this relief that applies to state taxes.
Q: What’s the Maximum They Can Garnish From Your Paycheck?
A: The maximum a creditor can take from your paycheck is typically either 25% of your disposable earnings or the amount that your disposable earnings exceed 30 times the federal minimum wage, whichever amount is lower. This limitation does not apply to all types of debt and doesn’t limit the amount that can be garnished for tax debt. However, wage garnishment by the IRS can be stopped if it is causing financial hardship.
Q: How Can I Stop Wage Garnishment Immediately in Florida?
A: The most immediate way to stop wage garnishment in Florida is to pay the debt that the garnishment is for in full. After the payment is processed, the creditor will remove the garnishment. If you cannot pay the debt, you may be able to get in contact with your creditor to negotiate other options to repay your debt. If your creditor is the IRS, a wage levy can be stopped if it is causing financial hardship.
Q: Can I Negotiate a Payment Plan to Stop Garnishment?
A: Yes, you could negotiate a payment plan to stop wage garnishment. The IRS is especially open to negotiations when the garnishment or paying the full tax would put you in financial hardship. There are also other options besides payment plans that could help resolve your tax debt. When you hire a wage garnishment lawyer, they can review the options for resolving your debt to determine what is in your interests. They can also negotiate with the IRS for you.
Hire a Wage Garnishment Lawyer at TaxSmith, LLC
Florida wage garnishment laws can limit your pay, preventing you from paying bills and other necessary expenses. This can be scary in any circumstances, and even more so when the garnishment is placed by a state or federal agency like the IRS or the DOR. There are options to address garnishment and certain limitations to what these agencies can take.
Reach out to TaxSmith, LLC, today to learn your rights and protect your financial interests.
