Wage Garnishment In The Carolinas: What The IRS Can (And Can’t) Do

In this article, you can discover…

How state wage garnishment rules differ from IRS wage garnishment rules.
What wage garnishment exemptions are available in the Carolinas.
How an experienced tax attorney can help protect your paycheck.

How Do Wage Garnishment Laws In The Carolinas Differ From IRS Federal Tax Garnishment Rules?

The IRS has broad authority under federal law to garnish your wages for unpaid federal taxes, no matter which state you live in. How much is garnished depends on your income, status, and the number of dependents you have.

While the IRS does have guidelines that define and protect “exempt income”, they can still garnish a fairly significant amount of your income.

In South Carolina, the state can garnish up to 25% of your gross wages for unpaid taxes. North Carolina, on the other hand, can only garnish up to 10% of your gross wages.

How Much Advance Notice Does The IRS Give Before Garnishing Wages?

The IRS will provide several notices before they garnish your wages. One important notice is a final notice, known as a “Final Notice Of Intent To Levy”, and is usually sent in the form of an IRS Letter CP90 or IRS Notice LT11 / Letter 1058.

This notice provides a 30-day advance notice that the IRS can garnish your wages or levy bank accounts. You then have 30 days to appeal that notice through a Collection Due Process Appeal. During your appeal, you and your attorney can request alternative collection measures, such as installments or offers in compromise. If you miss the 30-day deadline, you can still appeal through what’s known as an “Equivalent Hearing.” Although you lose some rights, it is still advisable to seek this hearing.

What Federal Wage Garnishment Exemptions Are Available?

Federal wage garnishment exemptions are based on the number of dependents you have and your marital status. For example, a single taxpayer in 2025 with no dependents can keep up to $288.00 of their income per week, and the rest must go to the IRS.

The IRS also provides exemptions for Social Security Disability benefits, veterans’ benefits, and child support payments.

Margaret Laurin Dukes of Ecton Law Firm, PA – dedicated lawyer with 4.9-star reviews.

Attorney Margaret Laurin Dukes is a caring, skilled tax lawyer serving the Carolinas. Since 2013, she’s helped clients just like you appeal wage garnishment and find more manageable ways to pay back the IRS and State Departments of Revenue.

Have questions, or in need of legal guidance? Reach out to Ecton Law Firm, PA for an initial consultation today.

Can I Appeal Or Challenge IRS Wage Garnishment Successfully?

Yes, you may appeal within 30 days of being sent the Final Notice of Intent To Levy from the IRS. You may also request an “equivalent hearing” to contest the collection due process up to a year from the date you were sent your Notice of Intent letter.

Still, the IRS can garnish your wages if you miss that initial 30-day deadline to appeal. Keep in mind that the letters of notification will be sent to your last known address. If you’ve moved and the IRS is not aware of it, this letter could be sent to an old address, leaving you unaware that anything is wrong but still on the hook for your wages to be garnished.

How Can A Tax Attorney Stop IRS Wage Garnishment And Protect My Paycheck?

An attorney can help you file an appeal within 30 days of the date listed on your Notice of Intent To Levy letter.

If you miss this deadline, you should begin to gather financial information with the help of your attorney to determine if wage garnishment would cause you economic hardship (such as leaving you unable to pay rent or pay your bills).

This information can then be brought before the IRS in hopes of stopping the levy or addressing it in a way that lends you more financial protection.

My Legal Work In Practice: Reducing IRS Wage Garnishment For A Client

Many clients come in and already have an active wage garnishment in place. In one case I recently handled, the IRS was taking the maximum amount allowed from a client’s wages, leaving him struggling to pay for housing, food, and medical care.

We got to work, quickly gathered up his financial information, and showed the IRS that his expenses were too high to justify their garnishment amount. I successfully got his levy reduced to a degree where my client could still afford his basic necessities while paying back his taxes.