This authority has been in force for years in federal regulations and allows the employer to be notified directly to withhold part of the pay. Currently, however, its enforcement is paused by an official government decision.

How does wage garnishment for student loans work?

When a federal student loan goes into default, the lender can order the employer to withhold up to 15% of the available wages of the debtor. This withholding continues until the debt is paid off or the delinquent status is resolved.

The law requires 30 days of prior notice before applying the deduction and guarantees a protected minimum income of US$217.50 per week. The debtor also has the right to request a hearing to challenge the measure.

Before any withholding is applied, the affected person can exercise the following rights:

• Receive formal notice 30 days in advance
• Request a hearing to present objections
• Request copies of all documents related to the debt
• Negotiate a voluntary repayment plan before the deduction begins

Is garnishment still in effect at this time?

The Department of Education paused the enforcement of these garnishments on January 16, 2026, while it moves forward with reforms to the student loan system. Since then, no debtor has been subject to active withholding through this route.

The agency did not announce a reactivation date, but the regulation that authorizes the 15% deduction remains intact. If there are no legal changes, the mechanism will again apply under exactly the same conditions that were in force before the pause.

The decision was made in Texas through Proposition 8, known as HJR2. It was approved on November 4, 2025, along with 16 other constitutional amendments promoted by the state Legislature.

What exactly does the new law ban?

The amendment prevents the state from collecting a tax on an inheritance, estate, legacy, or transfer of property after a death. It covers both the so-called “death tax” and property gifts between relatives, trusts, or inheritances.

The protection applies to transfers between individuals, family members, inheritances, and trusts. As a constitutional change, no future Legislature will be able to reverse it without a new popular vote.

How does this measure affect families?

Those who inherit assets, money, or property in that state will not have to pay state taxes on what they receive. The rule provides long-term legal certainty for family estate planning.

Some lawmakers questioned the measure because the state was not applying this tax before the vote. Even so, the ban is already in effect and requires no further action from heirs.

Although most taxpayers usually have children, IRS clarifies that the EITC can also be claimed without qualifying children as long as the basic eligibility requirements are met.

Approved refund of the Earned Income Tax Credit: What are the requirements to claim it?

The Earned Income Tax Credit (EITC) had a maximum amount of 8,046 for tax year 2025, which was filed at the beginning of 2026. This amount varies depending on the number of qualifying children and income level.

To claim this benefit, you need to meet:

• Have earned income from work such as wages, tips, and fees.
• Have a valid Social Security number (SSN) to work in the country.
• File the tax return on time and properly.
• Be a U.S. citizen or resident alien who meets IRS conditions.
• Do not file a return under the filing status Married Filing Separately.
• Do not file Form 2555 to exclude income earned abroad.
• Meet the income limits.

IRS will send deposits of up to $4,328: Who qualifies to receive them?

Those who have a qualifying child qualify to receive this particular amount, in addition to meeting the previous requirements.

A qualifying child is understood to be:

• Be a child, stepchild, adopted child, sibling, grandchild, or other relative.
• Be under 19 years old or under 24 if studying full time, except in the case of a permanent disability.
• Have lived with the taxpayer in the country for more than half of the year.
• Have a valid SSN.

What are the amounts per child?

The amounts vary depending on whether the taxpayer has children or not:

• Without children: USD 664.
• With 1 child: USD 4,427.
• With 2 children: USD 7,316.
• With 3 or more children: USD 8,231.