Q&A

Can child support intercept federal tax return?

Can child support intercept federal tax return?

Under the federal Treasury Offset Program, state child support enforcement agencies share information with the Treasury Department regarding parents that are behind on child support. With this information, the agency can intercept (take) federal tax returns and other payments to offset overdue child support.

Can tax refund be garnished for child support?

Yes, the tax refunds of individuals who owe back child support can be intercepted by the government through the Federal Tax Refund Offset Program. Since the program was enacted in 2010, child support agencies collected over $30 billion in child support through the federal tax refund offset program.

How long does IRS hold refund for child support?

The state that submitted the case typically receives money from a tax refund offset within two to three weeks. If the tax refund offset is from a jointly filed tax return, the state may hold the money for up to six months before disbursing.

Will I get my stimulus check if I owe back child support?

The CARES Act, in fact, specifies that the only reason a stimulus check can be offset is for overdue child support. Your stimulus check will, therefore, be garnished for the appropriate amount of unpaid child support if the recipient has made the authorities aware of it.

How are tax refunds intercepted to cover unpaid child support?

The Treasury Department sends a Pre-Offset Notice to let the parent who is behind on payments know that part or all of their federal tax refund is scheduled to be intercepted and sent to the child support recipient. The notice explains the process and shows the amount of past-due support owed at the time of the notice.

Is the child support rebate included in the tax refund?

The amount you receive for the Recovery Rebate Credit as a result of missed stimulus money would be included as part of your refund or applied to any tax you owe. However, the IRS states that the full amount of your tax refund, including any Recovery Rebate Credit, may be intercepted to pay past due child support.

Can a child tax credit be garnished?

Stimulus Denied: Can Child Tax Credits Be Garnished? Americans can rest easy knowing that the payments will be protected from both federal and state debts, such as back taxes.

What do they do with intercepted tax refunds?

Intercepting Tax Refunds. The Child Support program uses intercepted tax refunds to collect past-due child support, family support, maintenance (alimony), medical support, interest, fees, and other debts such as birth expenses.

The Treasury Department sends a Pre-Offset Notice to let the parent who is behind on payments know that part or all of their federal tax refund is scheduled to be intercepted and sent to the child support recipient. The notice explains the process and shows the amount of past-due support owed at the time of the notice.

How much does child support have to be in arrears to get a tax refund?

If the recipient does not receive assistance, child support must be at least $500 in arrears. 2  Usually, the state where the custodial parent lives—the parent who is owed child support—submits the debt for the Federal Tax Refund Offset. If multiple states are involved, then each state must submit for the offset.

What do you need to know about child support tax offset?

For a refund to be subject to the “tax offset,” the child support arrears owed by a child support obligor (which may be combined from multiple cases for the same obligor) must be at least

Stimulus Denied: Can Child Tax Credits Be Garnished? Americans can rest easy knowing that the payments will be protected from both federal and state debts, such as back taxes.