US Taxes: Garnishments

California - Creditor Garnishment Exemption Change [Effective January 1, 2025]

California announced that State Minimum Wage has increased from $16.00/hour in 2024 to $16.50/hour in 2025. This has a direct impact on the Creditor Garnishment exemption calculation which uses the state minimum wage in the calculation. GPTCI-54461

California - State Tax Levy Garnishment Exemption Change [Effective January 1, 2025]

California announced that State Minimum Wage has increased from $16.00/hour in 2024 to $16.50/hour in 2025. This has a direct impact on the State Tax Levy Garnishment exemption calculation when the Type of Debt of “Tax Debt to CA FTB”, or “Non-Tax Debt Court Ordered Debt/Vehicle Registration Collection” is selected, which uses the state minimum wage in the calculation. GPTCI-54461

Federal - Tax Levy Exemption Changes [Effective January 1, 2025]

The IRS announced the amounts exempt from Levy for 2025. GPTCI-53743

IRS Filing Status per 668-W	Standard Deduction Amount	Per Exemption Amount	Per Additional Exemption for Age/Blindness
Single	$15,000 (up from $14,600 in 2024)	$5,100 (up from $5,000 in 2024)	$2,000 (up from $1,950 in 2024)
Married Filing Jointly or Qualifying Widow(er)	$30,000 (up from $29,200 in 2024)	$5,100 (up from $5,000 in 2024)	$1,600 (up from $1,550 in 2024)
Head of Household	$22,500 (up from $21,900 in 2024)	$5,100 (up from $5,000 in 2024)	$2,000 (up from $1,950 in 2024)
Married Filing Separate Return	$15,000 (up from $14,600 in 2024)	$5,100 (up from $5,000 in 2024)	$1,600 (up from $1,550 in 2024)

https://www.irs.gov/pub/irs-drop/rp-24-40.pdf

Arizona - State Tax Levy Exemption Changes [Effective January 1, 2025]

The IRS announced the amounts exempt from Levy for 2025. Arizona uses the IRS Federal Tax Levy limits for their State Tax Levy calculation. GPTCI-53743

IRS Filing Status per 668-W	Standard Deduction Amount	Per Exemption Amount	Per Additional Exemption for Age/Blindness
Single	$15,000 (up from $14,600 in 2024)	$5,100 (up from $5,000 in 2024)	$2,000 (up from $1,950 in 2024)
Married Filing Jointly or Qualifying Widow(er)	$30,000 (up from $29,200 in 2024)	$5,100 (up from $5,000 in 2024)	$1,600 (up from $1,550 in 2024)
Head of Household	$22,500 (up from $21,900 in 2024)	$5,100 (up from $5,000 in 2024)	$2,000 (up from $1,950 in 2024)
Married Filing Separate Return	$15,000 (up from $14,600 in 2024)	$5,100 (up from $5,000 in 2024)	$1,600 (up from $1,550 in 2024)

https://www.irs.gov/pub/irs-drop/rp-24-40.pdf

Michigan - State Tax Levy Exemption Changes [Effective January 1, 2025]

The IRS announced the amounts exempt from Levy for 2025. Arizona uses the IRS Federal Tax Levy limits for their State Tax Levy calculation for State Tax Debts. GPTCI-53743

IRS Filing Status per 668-W	Standard Deduction Amount	Per Exemption Amount	Per Additional Exemption for Age/Blindness
Single	$15,000 (up from $14,600 in 2024)	$5,100 (up from $5,000 in 2024)	$2,000 (up from $1,950 in 2024)
Married Filing Jointly or Qualifying Widow(er)	$30,000 (up from $29,200 in 2024)	$5,100 (up from $5,000 in 2024)	$1,600 (up from $1,550 in 2024)
Head of Household	$22,500 (up from $21,900 in 2024)	$5,100 (up from $5,000 in 2024)	$2,000 (up from $1,950 in 2024)
Married Filing Separate Return	$15,000 (up from $14,600 in 2024)	$5,100 (up from $5,000 in 2024)	$1,600 (up from $1,550 in 2024)

https://www.irs.gov/pub/irs-drop/rp-24-40.pdf

New Jersey - State Tax Levy Ordered Percent will be calculated against Gross Wages

New Jersey State Tax Levy that has an Ordered Percent other than 10% will now be calculated against Gross Wages rather than the Disposable Income that it was calculated against previously. GPTCI-52415

Nebraska - State Tax Levy Exemption Calculation modified for Number of Dependents [Effective Immediately]

The Exemption calculation for State Tax Levies has been modified to take into account the Number of Dependents. The first exemptions is calculated at $162.50 per week with each additional exemption calculated at $63.46 per week. GPTCI-52262