IRS Tax Relief in Indianapolis, IN — Back Tax Help & Wage Garnishment Relief

I'm a gig worker in Indianapolis and never had taxes withheld. How bad is this? It depends on how long you've been working without paying taxes, but the balance is probably larger than you expect. You owe federal income tax, self-employment tax (15.3% for Social Security and Medicare), Indiana state tax (3.05%), and Marion County tax (2.02%) on your net earnings. That's roughly 35-45% of your net income that should have been set aside. The good news is that business deductions — especially vehicle mileage for delivery drivers — can significantly reduce the taxable amount. We file accurate returns and negotiate a resolution for whatever you actually owe.

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Does Indiana's county income tax complicate my resolution? Marion County's 2.02% rate is collected through your state return, so it's generally addressed alongside your state balance. However, the additional tax layer means your total tax burden in Indianapolis is higher than in many other cities, which reduces your disposable income — and that actually helps your IRS case, since the IRS considers your total tax obligations when calculating what you can afford to pay.

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Can the Indiana Department of Revenue garnish my wages independently from the IRS? Yes. The IDOR has its own enforcement authority. In a worst case, you could face simultaneous federal and state garnishments, though the combined amount would likely support a financial hardship argument we could use to negotiate release from one or both. We handle both agencies together to prevent this scenario.

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I haven't filed taxes in several years. Will I go to jail? Criminal prosecution for failure to file is extremely rare and typically reserved for deliberate fraud or tax evasion involving large amounts. The vast majority of non-filer cases are resolved civilly through penalties and payment arrangements. Filing your overdue returns is the single best thing you can do — it gets you back into compliance and often reduces your total balance, since IRS substitute returns tend to overstate what you owe.

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What deductions can delivery drivers claim in Indianapolis? The biggest deduction is vehicle mileage — the IRS allows a standard mileage deduction for every mile driven for work (67 cents per mile in 2024). For full-time drivers, this can represent thousands of dollars in deductions. Other deductible expenses include phone and data plans, insulated delivery bags, parking and tolls, and car maintenance. We ensure every legitimate deduction is claimed on your returns.