IRS Wage Garnishment: How to Stop a Wage Levy

An IRS wage levy (often called wage garnishment) is a continuous levy served on your employer using Form 668-W. Your employer must send the IRS everything above the exempt amount from each paycheck until the IRS releases the levy. Unlike most creditors, the IRS doesn't need a court order.

Before levying wages, the IRS must assess the tax, send a bill, and send a Final Notice of Intent to Levy and Notice of Your Right to a Hearing — the LT11 or Letter 1058 — at least 30 days before the levy.

There is no fixed percentage. The IRS lets you keep an exempt amount based on your filing status and number of dependents, published each year in Publication 1494. It's roughly equal to your standard deduction plus dependents, divided by pay periods. Everything above that goes to the IRS. For many people, that means most of their take-home pay — which is why acting quickly matters.

Your employer will give you Form 668-W Part 3 to claim your filing status and dependents; return it promptly or the exemption is calculated as married filing separately with no dependents.

The IRS must release a levy when it creates an economic hardship, when you enter an installment agreement (unless the agreement says otherwise), when the debt is paid, or when the collection period expires. In practice:

1. Call the number on the levy notice or the revenue officer handling your case.
2. Propose a payment plan; have pay stubs, bank statements and a monthly budget ready.
3. If you can't pay basic living expenses, request Currently Not Collectible status.
4. File any missing returns — the IRS won't release levies for a plan if you're not compliant.
5. Ask for a levy release once an agreement is approved; the IRS sends the release to your employer.
6. If the levy causes immediate hardship and the IRS won't help, contact the Taxpayer Advocate Service.

If you request a Collection Due Process hearing within 30 days of the final notice, levy is generally suspended during the hearing. After that window, you can still use the Collection Appeals Program (Form 9423) to challenge a levy before or after it's issued. Appeals can't reduce the tax, but it can order release if a collection alternative is appropriate.

The right IRS program depends on how much you owe, your monthly income after basic expenses, and any equity in assets. Here's how they line up:

• Owe $50,000 or less and can pay monthly: a Simple Payment Plan set up online, usually without a financial statement.
• Can pay within 180 days: a short-term plan with no setup fee.
• Can't pay the full balance before the collection statute runs out: an Offer in Compromise may be realistic — check with our OIC estimator.
• Can't cover basic living expenses: Currently Not Collectible status pauses collection.
• Penalties make up a big share of the balance: request penalty abatement.

Not sure? Our tax settlement calculator asks 8 questions and shows which programs fit.

Expect to provide a collection information statement — Form 433-F for most automated cases or Form 433-A when a revenue officer is assigned. Be ready with your last three months of pay stubs and bank statements, a list of monthly housing, utility, car, insurance and medical costs, and balances on any assets. The IRS compares your expenses to its Collection Financial Standards, so note any costs above the standards and why they're necessary (for example, a long commute or a medical condition). Having this ready on the first call is often the difference between a same-week release and weeks of back-and-forth.

States can also garnish wages for state tax debt, sometimes alongside the IRS. Rules vary: many states require a warrant or court filing, and exemption amounts differ. If you owe both, resolve them in parallel — the IRS and your state don't coordinate. Find your state's agency in our state tax relief guides or read about state tax debt.