Falling behind on your taxes can be overwhelming, especially once the IRS gets involved. One of the toughest collection actions they use is wage garnishment, where part of your paycheck is taken before it ever reaches your hands. Unlike a bank levy that happens just once, wage garnishments keep going every pay period until your tax issue is resolved. That steady drain on your income can make it hard to keep up with everyday expenses. In this post, we’ll break down what an IRS wage garnishment is, why it’s different from other levies, and what you can do to stop it.
What Is an IRS Wage Garnishment?
An IRS wage garnishment is a legal order sent to your employer requiring them to withhold a portion of your paycheck and send it directly to the IRS. Unlike a bank levy, which only hits once, this garnishment automatically renews every pay period. When your wages are garnished, your employer must keep sending money to the IRS until your debt is fully paid, or if the IRS agrees to another form of resolution such as an installment agreement or an Offer in Compromise, or if the IRS releases the levy due to hardship or another valid reason.
Continuous vs. One-Time Levies
To understand wage garnishments better, it helps to compare them with bank levies. Wage garnishments are continuous and they remain in effect until your balance is resolved or the IRS issues a release. Every paycheck is reduced.
On the other hand, bank levies are one-time hits. They only capture the funds available on the day the levy is issued, though the IRS can issue additional levies later.
This difference makes wage garnishments especially stressful as they chip away at your income week after week.
How Much Can the IRS Take from Your Paycheck?
The IRS does not take 100% of your paycheck. Instead, they use a formula based on your filing status, number of dependents, and standard deduction amounts. However, the exempt amount is often far less than what most people need to live on, which is why garnishments can create severe financial strain.
How to Stop or Release a Wage Garnishment
The IRS won’t stop garnishing wages on its own, but you have options to get relief, such as:
- Negotiating a payment plan that the IRS accepts in place of the garnishment.
- Proving financial hardship if the garnishment leaves you unable to cover basic living costs.
- Filing for Currently Not Collectible (CNC) status if you qualify.
- Exploring an Offer in Compromise to settle for less than the total owed.
Final Thoughts
IRS wage garnishments don’t just go away on their own. They stick around until your tax debt is resolved. Unlike one-time bank levies, they take a bite out of every paycheck, making it harder to cover your day-to-day needs. The good news is, you do have options. Whether it’s setting up a payment plan, proving financial hardship, or working out another type of relief, taking action can help you stop wage garnishment and get back on track. The sooner you act, the more control you’ll have of your financial future.
Steven N. Klitzner, P.A. is a tax attorney based in Miami, Florida. He has been practicing tax law for over 40 years, and currently holds a 10.0 rating by Avvo. Mr. Klitzner was appointed to the IRS Service Advisory Council in 2021 and is... 
