An IRS wage levy (the official term for wage garnishment) can take a significant portion of your paycheck. Unlike regular creditor garnishments that are capped at 25% of disposable income, the IRS uses its own formula that can take much more. The amount they leave you depends on your filing status and number of dependents, based on the standard deduction and personal exemptions. For a single filer with no dependents, the exempt amount might be as low as $1,100 per month. Everything above that goes to the IRS.
The fastest way to stop it: call the IRS. Contact the number on your levy notice, or call 1-800-829-1040. Tell them you want to resolve the debt and request a release of the levy. The IRS is required to release a levy if you enter into an installment agreement that addresses the liability. In many cases, simply setting up a payment plan over the phone will get the levy released within 1 to 2 pay cycles.
File a Collection Due Process (CDP) appeal. If you received a Notice of Intent to Levy (Letter 1058 or LT11) within the past 30 days, you have the right to request a CDP hearing by filing Form 12153. This legally freezes all collection activity, including the levy, until the hearing is resolved. This is your strongest tool if the levy hasn't started yet or is very recent.
Demonstrate economic hardship. If the levy is preventing you from meeting basic living expenses (rent, food, utilities, medical care), call the IRS or contact the Taxpayer Advocate Service at 1-877-777-4778. The IRS must release a levy that creates an economic hardship. You'll need to provide documentation of your expenses and income.
Request Currently Not Collectible status. If you genuinely can't afford any payment, CNC status will stop the levy. You'll need to provide financial documentation showing that your allowable expenses equal or exceed your income.
Submit an Offer in Compromise. If you qualify, submitting an OIC doesn't automatically stop a levy, but the IRS will typically hold off on collection while your offer is being reviewed. This takes 6 to 12 months, so it's not the fastest solution, but it stops the bleeding while you work toward a permanent resolution.
What won't work: Ignoring it. Quitting your job (the IRS will levy your next employer). Asking your employer to "hold" your paycheck. Your employer is legally required to comply with the levy and has no discretion in the matter.
The most important thing is to act the same day you find out about the levy. Every pay period you wait is money gone that you won't get back.