Can garnishments be claimed on taxes?
Jackson Reed
Updated on February 04, 2026
If your wages are garnished in order to pay your debts, the amount that is garnished is considered received by you for federal income tax purposes. That means that the amount garnished is considered income and is reportable as wages on your federal income tax return.
Will the IRS take my refund if my wages are being garnished?
Garnishment for Unpaid Taxes If you owe taxes and failed to pay them within the past 10 years, the IRS will collect the debt by garnishing your wages, levying your bank account and intercepting your tax refunds.
Do garnished wages show on w2?
Although your employer is not required to report wage garnishments on your W-2. you can manually insert this information on Box 14 of the form.
Can you deduct your garnished wages on your taxes?
On the other hand, if your wages are being garnished because you failed to pay for something tax deductible, the garnished amount may itself be tax deductible. For example, if you are being garnished to pay a medical bill, you may be able to apply the garnished amount toward the medical…
When do you not have to pay a wage garnishment?
Follows federal wage garnishment guidelines. Follows federal wage garnishment guidelines unless the debtor is a laborer or mechanic, in which case 60 days of wages are exempt, and after that, the first $25 earned per week is also exempt from wage garnishment.
What are the different types of wage garnishment?
There are two types of garnishment: In wage garnishment, creditors can legally require your employer to hand over part of your earnings to pay off your debts. In nonwage garnishment, commonly referred to as a bank levy, creditors can tap into your bank account.
How does a wage garnishment affect your credit?
A garnishment judgment will stay on your credit reports for up to seven years, affecting your credit score. But there a few easy ways to bolster your credit, both during and after wage garnishment. Building a budget — and sticking to it — can help you stay on top of your finances to avoid another garnishment.
