How Do I Report Income from Wage Garnishments on a W-2 Form?

Employers may decide to report income from wage garnishments in box 14 on a W-2 form. The Internal Revenue Service does not legally require you to state the total sum that you remove from an employee’s paycheck. Use box 14, labeled “Other”, if you include the figure. Add the money that you garnished from a paycheck for the most recent tax year before entering the sum total into box 14.

Employers face actual legally-required steps that they must fulfill when an employee faces wage garnishments. Withhold the court or government agency’s mandated amount from an employee paycheck once you receive a notice. Confirm that you received any notice of wage garnishment and state your compliance within one week. Send the amount that you withheld to a creditor.

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