Wage Garnishment From a Tax Return Laws in Kentucky
The Kentucky government, like the federal government, imposes an income tax on money earned in the state. That means Kentucky residents must file income tax returns. In addition, certain non-residents who generate income from inside Kentucky must also file tax returns. The Kentucky Department of Revenue has the authority to garnish a delinquent taxpayer's wages to enforce the debt. Unlike other types of debt, the Kentucky Department of Revenue does not have to go to court and obtain a court order to garnish wages.
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Garnishment
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Wage garnishment occurs where a creditor intercepts a portion of a debtor's wages to satisfy an unpaid debt. It is a debt enforcement mechanism often used by unsecured creditors like credit card companies, judgment holders and custodial parents owed child support. State and federal governments also use it to enforce tax arrears. Most creditors must obtain a court order or writ of garnishment to order the debtor's employer to withhold and divert the wages. However, the Kentucky Department of Revenue (like the Internal Revenue Service) has the administrative authority itself to order a delinquent taxpayer's employer to withhold and divert certain wages.
Tax Return
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The state government taxes all income earned in Kentucky whether by resident or nonresident. Individuals who earn income in Kentucky must file a personal income tax return by April 15 every year. The Kentucky personal income tax is progressive like the federal tax. The lowest rate is 2 percent and it is graduated to a high of 6 percent depending on how much income the individual makes. The higher the income, the higher the tax rate the state imposes on the individual. Chapter 141 of the Kentucky Revised Statutes (as well as Department of Revenue Administrative Regulations) governs Kentucky personal income tax laws.
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Limitations
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Kentucky state law exempts 75 percent of a delinquent taxpayer's wages from garnishment. In addition, if the individual makes less than 30 times the minimum wage per week, then the Kentucky Department of Revenue cannot garnish that person's wages. For example, if an individual makes $500 per week, up to $125 per week can be garnished. The garnishment can continue until the back taxes plus penalties and interest are paid in full.
Warning
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Contact a qualified attorney licensed to practice in Kentucky or other qualified tax professional to find out what obligations, if any, you may have with regard to Kentucky garnishment from a tax return laws, which are subject to change.
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References
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