More than ever, taxpayers are having their wages garnished by the IRS due to unpaid debts. IRS wage garnishments can happen for a number of reasons. Unpaid taxes, loans or child support can all result in wage garnishment. Wage garnishment consists of the IRS taking a percentage of your check.
The IRS determines the percentage after gathering information about your current expenses. If you have a larger surplus in your income, a larger amount will be taken. There are obvious reasons why this can be financially debilitating. Many don’t consider what the long-term affect this can have on their credit score, or whether it has an affect at all.