Q:

Can the IRS take my whole paycheck?

A:

Quick Answer

While there are no limits that prevent the IRS from taking a whole paycheck, exemptions can be filed to protect a small portion of a person's pay. The IRS publishes a table of exemptions, which is calculated using tax and W4 exemption status.

Continue Reading

Full Answer

Because the IRS can bring such heavy levies against income, it's important to address tax concerns as soon as they come up. Even if back taxes that the IRS says are owed can't be paid, don't ignore bills or statements. The IRS will work with taxpayers to find alternatives for collection, including letting taxes be paid over time. Such solutions are usually only available if action is taken immediately, and some experts advise seeking the assistance of a legal tax professional in negotiating terms with the IRS.

Learn more about Income Tax

Related Questions

  • Q:

    What is a pay stub?

    A:

    A paycheck stub is the portion of a paper paycheck that the employee keeps after cashing their payroll check. Information typically included on the paycheck stub includes the number of hours worked, the amount paid to the employee, a breakdown of taxes paid and a list of various deductions.

    Full Answer >
    Filed Under:
  • Q:

    How do you calculate tax exemptions?

    A:

    Someone who wants to calculate tax exemptions can use the IRS withholding calculator. When using the calculator, it is a good idea to have pay stubs, income tax returns and accurate estimates on hand.

    Full Answer >
    Filed Under:
  • Q:

    What is the difference between claiming 0 and 1 on taxes?

    A:

    The difference between claiming 0 and 1 on a tax return is that 0 means the taxpayer claims no exemptions while 1 means the taxpayer claims one exemption, according to the IRS. A taxpayer may take one exemption for each person for whom he is financially responsible.

    Full Answer >
    Filed Under:
  • Q:

    What is the purpose of IRS Publication 525?

    A:

    IRS Publication 525 discusses varieties of taxable and nontaxable income such as wages, fringe benefits, bartering, partnerships, royalties, pensions, life insurance proceeds, welfare and public assistance. Employee compensation is one of the most common forms of taxable income, and normally an employer takes taxes out of an employee's net income.

    Full Answer >
    Filed Under:

Explore