Under normal circumstances, creditors are limited when it comes to the amount of money they can take from your paycheck after a garnishment order has been issued. However, the IRS is not bound by normal garnishment protocol and thus can garnish your paychecks without a court order and without abiding by standards to which other creditors must adhere.

In fact, because the IRS uses a different set of rules when recouping money that is owed to it, people may be unsure of how much of their earnings will be claimed during a levy. You can prepare yourself financially by understanding the basics of how much the IRS can claim if you are facing a wage levy.

Allowable Take-Home Income

Creditors are normally bound by how much they can claim out of your paycheck by your state's garnishment laws. In most cases, a company can take no more than 15 to 25 percent of your earnings.

However, the IRS does not determine its amount by a percentage, but rather on the amount that you are legally allowed to keep for yourself. It takes into consideration the amount deducted for Social Security, taxes, and other standard deductions. The amount that is left over is then utilized to determine how much it can levy to repay your tax debt.

Number of Dependents

After you pay your standard deductions, the amount that remains is scrutinized for the number of dependents you claim on your paycheck. In fact, the IRS will not use the number of dependents that you claim on your tax returns or even on your W-4 form.

Instead, it will send your employer a form 668-W, which you are required to complete. If your employer does not give you this form, it could be legally liable for your tax debt, along with any penalties incurred for this infraction. The number of dependents that you claim on this form will be used in part to determine the levy amount.

Extenuating Circumstances

Despite you owing back taxes, you could avoid heavy garnishment payments if you are experiencing an extenuating circumstance. For example, if you are:

• 65 or older
• Blind 
• Receiving income from sources like unemployment or worker's compensation

The IRS may be unable to carry out a levy against you or claim the normal amount that would apply to other delinquent taxpayers. If any of these criteria apply to you, you should retain a tax professional who can help provide the needed proof to stop the levy or protect most of your income.

Garnishment Poverty Guidelines

By law, the IRS must leave you enough income to support your family and meet every day basic necessities like buying groceries and paying your utility bills. If your income is at or below the established poverty guidelines for your household size, the IRS may be unable to claim a sizable portion of your paycheck.

In fact, depending on how low your earnings are, you may not be levied at all, particularly if you already can barely afford to pay your rent or mortgage, pay utility expenses, and buy groceries for your children. If it does take anything at all out of your paycheck, it may be only a small amount that you can afford better than a higher percentage.

When you receive notice of the IRS' intent to levy your income, you may wonder how much it can legally claim each pay period. These levy guidelines can help you prepare yourself and your household accordingly. Even more, they can help you learn if you may qualify for paying a lower amount due to unavoidable circumstances or exceptionally low wages.