Code of Massachusetts Regulations › 830 CMR - DEPARTMENT OF REVENUE › Title 830 CMR 62C.00 - State Tax Administration › Section 62C.55A.1 - Determination of Amount Exempt from Levy

Current through Register 1525, July 5, 2024
(1)
General
. Under M.G.L. c. 62C, § 55A(a)(9) and
			 (d), certain amounts payable to or received by a taxpayer as wages or salary
			 for personal services or as income from other sources are exempt from levy. 830
			 CMR 62C.55A.1, describes what amount of wages, salary, and other income payable
			 to or received by a taxpayer is eligible for the exemption from levy and
			 describes how pay periods are determined. 830 CMR 62C.55A.1, defines the term
			 "dependent" for purposes of determining amounts exempt from levy, and explains
			 the procedure for the taxpayer to claim any dependent exemptions. Finally, 830
			 CMR 62C.55A.1, explains how the payor should submit to the Commissioner amounts
			 not exempt from levy.
(2)
Definitions
. For purposes of 830 CMR 62C.55A.1, the
			 following words have the following meanings, unless the context otherwise
			 requires:
Commissioner
, the Commissioner of
				Revenue or the Commissioner's designee.
Day
, for purposes of 830 CMR
				62C.55A.1(5) and (6), the term "day" does not include Saturdays, Sundays or a
				legal holiday within the meaning of M.G.L. c. 4, § 7 and Section 7503 of
				the Internal Revenue Code in effect on July 1, 1983.
Dependent
, a person described in
				M.G.L. c. 62C, § 55A(d)(1)(B) and 830 CMR 62C.55A.1(5), and a person
				defined in Section 152(a)(1) through (a)(9) of the Internal Revenue Code in
				effect on July 1, 1983.
Payor
, the employer or other person
				obligated to pay the taxpayer wages, salary, and other income and upon whom the
				Commissioner's levy is served with respect to such wages, salary, and other
				income.
Pay period
, a period of time for which
				any wages, salary, and other income are payable to or received by a taxpayer.
				The rules for determination of a pay period are found in 830 CMR
				62C.55A.1(4).
Taxpayer
, any person whose wages,
				salary, and other income are subject to levy by the Commissioner.
Wages, salary, and other income
, all
				income from whatever source derived, including, but not limited to, the items
				specified in Section 61 of the Internal Revenue Code in effect on July 1, 1983,
				and including, but not limited to, the items specified in M.G.L. c. 62, §
				2(1), but excluding any amounts listed as being exempt from levy under M.G.L.
				c. 62C, § 55A(a)(1) through (a)(9).
(3)
Determination of Exempt
			 Amount
. Out of amounts payable to the taxpayer as wages, salary,
			 and other income for each pay period described in 830 CMR 62C.55A.1(4), the
			 following amounts are exempt from levy:
(a) If
			 the pay period is daily: $15 personal exemption, plus $5 for each person who is
			 claimed as a dependent pursuant to 830 CMR 62C.55A.1(5).
(b) If the pay period is weekly: $75 personal
			 exemption, plus $25 for each person who is claimed as a dependent pursuant to
			 830 CMR 62C.55A.1(5).
(c) If the
			 pay period is once every two weeks: $150 personal exemption, plus $50 for each
			 person who is claimed as a dependent pursuant to 830 CMR
			 62C.55A.1(5).
(d) If the pay period
			 is twice in a calendar month: $162.50 personal exemption, plus $54.17 for each
			 person who is claimed as a dependent pursuant to 830 CMR
			 62C.55A.1(5).
(e) If the pay period
			 is monthly: $325 personal exemption, plus $108.33 for each person who is
			 claimed as a dependent pursuant to 830 CMR 62C.55A.1(5).
(f) If the pay period is not daily, weekly,
			 once every two weeks, twice in a calendar month, or monthly: a proportionate
			 amount determined by multiplying the sum of an annual personal exemption of
			 $3,900, plus an annual dependent exemption of $1,300 for each person who is
			 claimed as a dependent pursuant to 830 CMR 62C.55A.1(5), by a fraction the
			 numerator of which is the number of hours, days, weeks, or months, whichever is
			 applicable, in the pay period, and the denominator of which is the
			 corresponding number of hours, days, weeks, or months in a calendar year.
Example
: Taxpayer A, an employee of
				the X corporation, is paid wages of $600 every three weeks and has two
				dependent children. The amount of wages exempt from levy for taxpayer A for
				each three week pay period is:
(3,900 + (2 x 1,300)) x 3 weeks = $375.00
52 weeks