Can My Taxes Be Garnished During Covid?
In normal circumstances, debt collectors can’t intercept or garnish your income tax refund. Even when you default on credit cards, creditors and debt collectors can’t take your income tax refund from Uncle Sam directly. They can levy your bank account or garnish your wages, however. The good news is that it’s not that easy.
Can a creditor garnish your paycheck without a judgment?
Different rules, as well as different legal limits on how much of your paycheck can be garnished, apply to various types of debt. In most cases, a creditor can’t garnish your wages without first getting a money judgment against you.
Are there limits to how much you can be garnished for?
Garnishment limits set by the Consumer Credit Protection Act do not apply to unpaid tax debt, child support, bankruptcy orders, student loans or voluntary wage allocations. Federal agencies can garnish up to 15% of an individual’s wage, while the Department of Education can garnish up to 10%.
