September 19, 2008, Newsletter Issue #81: Wage Garnishment Defined

Tip of the Week

A garnishment is defined as a procedure whereby a creditor seizes your property through a third party. The term garnishment and attachment are used interchangeably throughout IRS terminology. (They mean the same thing).

If you are involved in a wage garnishment situation, the IRS would be your creditor while your property would be your wages. Wages are what you earn as an employee. They are reported on the Form W-2, which you use to prepare your income tax return.

The IRS can garnish your wages to fulfill an unpaid tax bill and leave you with just enough to meet your living expenses.

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