IRS Wage and Salary Levy Exemptions for 2017

The IRS recently issued Publication 1494, Tables for Figuring Amount Exempt From Levy on Wages, Salary, and Other Income – Forms 668-W(ACS), 668-W(c)(DO) and 668-W(ICS), for 2017. ¬†This publication provides the amount of wage and salary that are exempt from the IRS’s levy.

The monthly wage and salary amounts for 2017 are as follows:

Exemptions
Year Filing Status 1 2 3 4 5 6
2017 Single 866.67 1,204.17 1,541.67 1,879.17 2,216.67 2,554.17
2017 MFJ 1,395.83 1,733.33 2,070.83 2,408.33 2,745.83 3,083.33

This is about a 1% increase from the 2015 numbers, which were:

Exemptions
Year Filing Status 1 2 3 4 5 6
2015 Single 858.33 1,191.67 1,525.00 1,858.33 2,191.67 2,525.00
2015 MFJ 1,383.33 1,716.67 2,050.00 2,383.33 2,716.67 3,050.00

About the IRS Wage & Salary Levy

The IRS issues a wage and salary levy using a Form Form 668-W(c)(DO). The form is mailed to the taxpayer’s employer. The employer is then obligated to calculate the amount of the wage or salary to be remitted to the IRS.

The amount remitted to the IRS depends on the information the taxpayer provides to the employer about his or her exemptions (i.e., him or herself and his or her dependents) and the amount of pay that the taxpayer earned. The employer is supposed to solicit the exemption information from the taxpayer, including the names and social security numbers for the taxpayer’s dependents. The IRS can personally assess the tax balance and impose penalties on an employer who does not comply with the levy.

Releasing an IRS Wage & Salary Levy

The IRS’s wage and salary levy remains in place until the IRS releases the levy (either because the taxpayer made arrangements to pay the tax or releasing the levy will facilitate collection of the tax or the levy is creating a financial hardship) or the tax is paid. The levy can also be released by operation of the bankruptcy automatic stay on collections.