Posts by Jamie Morales2

ruggedmaker2 said:Look, here's the cold, hard truth. What you get from your main job is your salary. That freelance stuff? That’s considered "other income." They aren't the same thing in the eyes of the law.

Under current rules, you can protect 2/3 of your net pay and your commuting allowance .
That second check from your freelance gig isn't a salary. It's just extra income. And because of that, it isn't protected.

The only time "other income" gets protection is if it's your absolute *only* source of money. But since you're already employed and drawing a regular paycheck, that side hustle doesn't qualify for the protected account status.

http://www.irs.gov/help/explanation-of-income-types

Pay close attention to this part:
The same rules apply when garnishments hit income that isn't a standard wage, pension, or business profit. Unless you can prove via an official legal document that this specific secondary income is actually your sole source of steady cash, it stays unprotected.

Thanks for clearing that up.

The reality is that none of this—not my current two income streams, nor even a potential third one—counts as a formal salary; it's all just freelance fees. But I guess that doesn't matter, because, as usual, the laws are drafted by people living in some ivory tower who couldn't care less about how life actually works on the ground...

Hey everyone,

Here’s the deal. About four years ago, I took out an auto loan, and for over a year, I was paying it back without missing a beat. Then life decided to throw a wrench in everything—lost my job and dealt with some family chaos—and suddenly I couldn't keep up. The bank called it, insurance stepped in to cover the loss, and now I'm staring down a garnishment. I finally managed to get back on my feet and started working again, setting up a protected account where they take a third of my check. But then three months ago, I picked up a side gig, asked for the pay to go into that same protected account, and boom—the entire paycheck vanished into the garnishment. I’ve been running myself ragged from the IRS office to my accountant's door, digging through legal jargon, only to find out that according to the rules, I can only protect one single income stream. Now I have another freelance gig coming up, and if they grab that whole check too, I’m basically drowning while trying to swim. It feels like being stuck in a rigged game when you realize that even though I'm looking at roughly $2,000 + $2,000 + $333, I can only actually keep $433.

Thanks in advance for any insight you can offer.