Q&A: IRS Garnishments

Question:  We have an individual whose income is being garnished by the IRS.  The net amount that he currently receives would allow him to meet our income requirements.  But if we use his gross wages, he would be above the income limit.  Do we have to count the gross amount or can we count the net amount since that’s what he actually has to live on?  ~ Marco in Texas

Answer:  Wages (or Social Security income) can be garnished for a variety of reasons, most commonly child support or alimony.  HUD requires that the gross income be counted in these cases, even when it will disqualify an individual for subsidy.  Here’s an example:  If your tenant lived with his child we would count his gross wages, even though he has to spend money to support the child.  So in cases where people don’t live with their children, the child support amount is not deducted from their gross wages either.