Stimulus Update - Wage Garnishments Suspended
For those who are reading my posts for the first time, my name is Gary Levine and I am a CPA and a tax preparer in the West Fan.
Recently, I have been posting updates and answering questions regarding the new Stimulus package. I appreciate that everyone has been wondering about understanding that I am not trying to be self-servicing, but am simply wanting to help you as best as I can.
Today I wanted to fill you in on some important items in the stimulus package that affect wage garnishment. In short, all federal wage garnishments are suspended - unless the garnishment is for child support. Also suspended are the seizure of tax refunds, the reduction of any other federal benefit payments and other involuntary collection efforts.
While it’s still unclear how states are handling these kinds of garnishments, the answer is most likely that they will suspend them as well. The federal unemployment benefits are being provided to the states who then will disburse the federal funds. Since they're distributing federal dollars the federal government has mandated that the states not seize the funds for wage garnishments.
If you have any questions about a wage garnishment or other financial matters - whether it’s related to the recent stimulus package or not, please don’t hesitate to reach out. I’m happy to provide resources and information during this turbulent time.