Over 260 million tax returns were filed in the United States in 2021.
That’s a lot of money. But, if an issue arises with your tax return, the IRS might end up garnishing your wages.
Let’s go through how to avoid IRS wage garnishment so that you get the most out of each paycheck.
3 Ways To Avoid IRS Wage Garnishment
- Pay It Off
- File On Time
- Set Up A Plan
1. Pay It Off
The easiest way to avoid IRS wage garnishment is to pay off your debt. After all, they can’t garnish your wages if you don’t owe them anything!
Of course, if you just can’t afford it, you may still end up with IRS wage garnishment. In that case, you’ll need to talk to the professionals about your options for IRS wage garnishment releases.
You can also take out loans to avoid having the IRS garnish your wages. But, depending on how you choose to borrow and what interest rates you get, you may end up paying a lot more than if you’d taken one of the other options to avoid IRS wage garnishment.
2. File On Time
It’s also essential to file your tax return on time. Even acknowledging that you owe money to the IRS and providing them with a method of payment shows them that you plan to pay off your debt, making it less likely that they will garnish your wages.
But, if you don’t manage to get your tax return in on time, you can also ask for an extension to give you more time to prepare. For example, you can get an extension to October 15th by filling out one easy form. Or, you can get an extension by making a partial payment.
3. Set Up A Plan
You can set up a payment plan if you don’t have the liquid cash to pay off your debt. This is another reason you need to file your return on time—you’ll be able to set up an installment plan initially, preventing the IRS from taking action against you for not paying the total amount right away.
The IRS allows compromises, too. That’s why they have the Offer-In-Compromise program. You may even end up paying a lot less than you were initially supposed to, depending on the terms of your agreement.
You’ll want to consult with professionals when you’re trying to prevent your wages from being garnished. They’re more skilled in coming up with compromises that the IRS will agree with, so the process will be as smooth as possible, and you won’t end up with more stress this tax season.
Avoid IRS Wage Garnishment Today
There are lots of ways you can avoid IRS wage garnishment. Make sure you choose one before the deadline to file hits, or you may end up in a sticky situation!
Do you need more financial advice? Some of our other posts may be able to help you out, so scroll through them to find out.