If you have ever had to deal with a wage garnishment then you understand how difficult it is to change your financial habits to include payments to the IRS. With a significant portion of your pay going to the IRS, it is important that you budget all of your expenditures accordingly to avoid further financial distress with or without the IRS. We would like to assist and have compiled a short tip list to help make budgeting with a wage garnishment easier. If you have not had to deal with a wage garnishment, but are facing the threat of one these tips may come in handy in the future.
- Reduce Unnecessary Expenses
If you begin to notice that your income begins to match your expenses, you should start thinking about reducing some of your expenses to make room for IRS payments. Truth is, you can probably live without cable television or that trip to Starbucks each morning. In the long run, even the smallest expenditures will add up.
- Speak to a Financial Specialist or Make use of Free Financial Tools
There are many online and mobile money management sites, as well as specialists, who can help you get started. If fact, even our team assists customers in this matter so they do not see a repeat of their infuriating tax problems. All of these are great ways to stay on track!
- Use Mostly Cash or Debit and Limit Credit Card Use
Take a pre-determined amount out in cash to avoid over-spending. Credit cards allow people to mindlessly buy things they really do not need. Try to stick to a budget with cash or debit and only use credit when it is absolutely necessary.
- Coupons are your Friends
Most people do not care to use coupons because most only take cents off of an item. But, these coupons add up over time and can save you hundreds of dollars a year! Invest in couponing and it will soon pay off.
- Pay Down a Portion of your IRS debt before you Splurge
The trick here is to focus on needs versus wants. If you absolutely need a new refrigerator because yours is broken, it makes sense to splurge on a new one (allowing that you have the ability to do so).
When you retain us, we will immediately contact the IRS on your behalf, and usually, within 24 hours, we can stop wage garnishment or intent to levy. To stop a wage garnishment, we need to be able to persuade the IRS that you have a viable plan for resolving your IRS back tax debt. Sometimes, this includes a reduction in the amount due because of IRS errors, penalty abatement, innocent spouse release, hardship exemptions, and other tax resolution strategies we can employ on your behalf. Call Michigan Pure Tax for a FREE consultation: (248) 329-1160