Whenever the Agency imposes levy on an individual, it is his wage or salary that is typically the target. The Agency is however not bound to impose levy on your wage only, is can also do so to your properties such as furniture, home, vehicles or any other possession that has value.
Ideally, IRS does not garnish your entire income despite the fact that there is no particular limit on regular income. Only the amount of income that is exempted from taxation will be left. Any other income will be garnished to cover the taxes you owe to the agency.
Basically, what the IRS does is to draw up a table that will be used for the garnishment process and send it to your employer. The employer will thereafter, use it to know how much money they will pay you. The rest of your salary goes to the IRS.
If you want to know how the Agency calculates the amount of money that you will receive from your employer, you will need to know how much tax you are exempted from as well as your standard deductions. Once you have these amounts, you add them up. The results will be the amount of money you will be receiving monthly until you clear your debts with IRS.
Most people think that the standards amount the IRS can garnish is 25% of the salary earned monthly. Ideally, the Agency does not have a limit on how much they will take out of your salary. This is especially if you are single and have no dependents. They will only consider what you will be left with and the remaining amount is directed to them.
As for a married individual who has children to support, the law protects you in several ways. First, the levy cannot exceed 50% of the annual net income. Secondly, if you are employed, your employer cannot fire you based on the fact that your salary is garnished. There are severe penalties in place that will be imposed on any such employer.
With regards to the money in your bank account, the Agency can only garnish it once. Any other amount that you put in will not be touched by the IRS, well,…