Question

Carson Holiday has a federal tax levy of $4,154.00 against him. If Holiday is single with four personal exemptions and had a take-home pay of $1,060.00 this week, how much would his employer take from his pay to satisfy part of the tax levy?

Answer 1

The federal wage garnishment law ,consumer credit protection act

The garnish limit of 1) 25% of weekly disposable income ,if the individual income is greater than $290

2)amount greater than 30 times of minimum wages of $7.25 ($7.25x 30)=$217.5

set by garnishment law do not  apply to 1)federal tax 2) unpaid tax debt,3) bankruptcy order 4) student loan

The debt collection improvement Act authorize federal agencies to garnish upto 15% of disposable earning

for unpaid federal tax so , in the present case amount can with hold by employer is 15% of $1060 = $ 159.