IRS Form 668-W: Check Your Payroll Statement And Exempt Pay
What Does Form 668-W Mean?
The IRS guidance for levy recipients identifies Forms 668-W(ICS) and 668-W(ACS) for wages, salary and other income. This is a levy document sent to a third party such as an employer, not the same document as an earlier final notice describing hearing rights.
Ask payroll for the packet and the statement it needs you to complete. Check the taxpayer, form version, tax information, employer receipt date and contact instructions shown in the actual documents. A web summary cannot establish whether an individual levy is correct.
What Should I Return To Payroll?
The IRS employee guidance says your employer provides a Statement of Dependents and Filing Status to complete and return within three days. If it is not returned in that time, the exemption is calculated using married filing separately with no dependents. Follow the actual statement and promptly clarify any missing or unclear instructions with payroll and the IRS.
Keep a dated copy and a record of when payroll received it. Label that status statement returned. Keep payroll calculation checked and IRS release confirmed as separate statuses. None follows automatically from the others.
Which Inputs Affect The Exempt Amount?
Publication 1494 provides the tables for exempt take-home pay. The currently retrieved publication is revised December 2025 and contains 2026 tables. Use the applicable levy year and pay frequency, not a number copied from an old sample form. The inputs include filing status, allowed dependents and applicable additional standard-deduction information.
| Input To Confirm | Useful Question For Payroll |
|---|---|
| Year And Table | Which applicable-year Publication 1494 table is being used? |
| Pay Frequency | Is the calculation weekly, biweekly, semimonthly or monthly? |
| Statement Information | Does the calculation use the filing status and dependent information on my returned statement? |
| Additional Inputs | Were any applicable age/blindness entries considered under the instructions? |
| Special Instructions | Has the IRS provided any instructions affecting the exemption or other income? |
This checklist organizes questions; it does not calculate your exemption or authorize payroll to change the levy. The IRS wage-levy manual explains additional circumstances. Other income and special IRS instructions can affect the result, so there is no universal percentage that every employee keeps.
What Records Should I Keep Together?
Create a private folder with the levy packet, completed statement, handoff record, relevant pay stubs and correspondence. On a separate contact log, record who you contacted, the question, the response and any confirmed next step. Do not put tax identifiers, payroll records or the completed statement in public comments, social messages or CuraDebt's evaluation form.
For each affected pay period, note the pay date, amounts shown on the stub, what explanation payroll supplied and any unresolved difference. A record of money withheld is different from an IRS account balance confirmation. Ask the IRS for an updated payoff figure when needed; the original total is calculated through the date shown and can change as interest and applicable penalties accrue.
Is This The Same As A Bank Levy Or A Hearing Notice?
No. The IRS distinguishes the continuous effect of a wage levy from a bank levy. Do not apply a bank's waiting-period rules to your payroll statement. Likewise, returning the employee statement is not a Collection Due Process hearing request.
If you have a separate hearing notice, read its actual instructions and date. Our guide to checking a separate hearing notice covers a different document. Do not infer that completing one form answers every notice in your file.
What If The Levy Prevents Basic Living Expenses?
The IRS hardship guidance says to contact the number on the levy or correspondence immediately and explain your financial situation. If the IRS determines a wage levy creates an immediate economic hardship by preventing basic, reasonable living expenses, it must release the wage levy. Be ready with financial information and your employer's fax number. Release does not erase the tax balance.
A request, a submitted statement and an actual release are separate events. Ask what has been decided and what payroll has received. Do not tell an employer to stop withholding merely because you requested help or started an evaluation.
What Happens If The Levy Continues Into Another Year?
The IRS levy-recipient guidance says an employee may submit a new Statement of Dependents and Filing Status and ask the employer to recompute the exempt amount when the levy continues into a new calendar year. Keep a fresh copy and note the applicable table rather than reusing an old screenshot.
The FTC's tax-relief guidance cautions against guaranteed results. You can contact the IRS directly or consult an appropriately authorized professional. A free CuraDebt tax-debt options evaluation does not submit a payroll statement, represent you before the IRS, stop withholding or guarantee a release.
Frequently Asked Questions
What Is A Form 668-W?
It is an IRS levy form used for wages, salary and certain other income. Identify the actual version and follow its instructions; it is different from a prior notice describing hearing rights.
Does Returning The Dependents Statement Stop The Levy?
No. Statement returned, payroll calculation checked and IRS release confirmed are separate statuses. Returning the statement does not itself establish release.
Is The Exempt Amount A Fixed Percentage Of My Pay?
No universal percentage applies. Check the applicable-year Publication 1494 table, pay period, statement inputs and any special IRS instructions.
Can I Use The Same Exemption Table Every Year?
Use the applicable year. If a wage levy continues into another calendar year, the IRS guidance permits a new dependents and filing-status statement and a request for payroll to recompute the exempt amount.