Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-12-2012, 08:09 PM
Junior Member
 
Join Date: Jan 2012
Posts: 1
Angry Wage Garnishment

My mother had over 6000 dollars taken from garnishment. Will her taxes be based on her earnings before or after garnishment?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-13-2012, 01:15 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
“My mother had over 6000 dollars taken from garnishment. Will her taxes be based on her earnings before or after garnishment?”--->On her 1040 after garnishment; a wage garnishment is the process in which an ER is legally required to withhold a specific portion of an EE’s pay to satisfy a debt the EE owes. The amount of the garnishment is based on the EE's disposable income after withholding taxes; disposable income refers to the employee's gross pay after payroll taxes and pre-tax voluntary deductions have been withheld. Payroll taxes include federal income tax, Social Security tax, Medicare tax and, in most cases, state income tax. If city or local income tax or unemployment insurance apply, the employer must also withhold them to arrive at the disposable income. Furthermore, pre-tax deductions, such as medical insurance and traditional 401k plans are deducted before taxes are withheld, and are therefore included in the calculation of disposable income.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
1099-MISC for Garnishment bldu Filing Requirements 1 03-31-2011 01:54 PM
Tax Garnishment kdunn247 Miscellaneous 0 01-25-2010 12:13 PM
What is the definition of Garnishment of Wages? TaxGuru Miscellaneous 0 01-24-2010 11:27 AM
What is the new Social Security Wage Base for the tax year 2009? TaxGuru For 2008 0 10-21-2008 08:54 AM
What is the Social Security Wage Base for 2008? TaxGuru For 2008 0 01-07-2008 01:41 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.