Can the court take your tax refund?
Asked by: Prof. Olen Marquardt Sr. | Last update: December 5, 2025Score: 4.9/5 (31 votes)
As a general rule, the only debts that can lead to the state intercepting someone's federal or state tax refund are government debts.
Can the courts take my federal tax refund?
If you're expecting a tax refund but have concerns about creditors garnishing it, you may be worrying too much. Federal law allows only state and federal government agencies (not individual or private creditors) to take your refund as payment toward a debt.
How to find out if your income tax refund will be garnished?
Not all debts are subject to a tax refund offset. To determine whether an offset will occur on a debt owed (other than federal tax), contact BFS's TOP call center at 800-304-3107 (800-877-8339 for TTY/TDD help).
How can I stop my tax refund from being garnished?
To stop the garnishment, you can set up a payment plan with the IRS, as they often work with taxpayers to create manageable monthly payments. If you're experiencing financial hardship, you may qualify for an Offer in Compromise (OIC) to settle your debt for less than the full amount.
Who can take your federal tax refund?
The U.S. Treasury Department allows the Bureau of the Fiscal Service (BFS) – the people who cut your IRS refund check – to keep your refund in cases where you owe money to government agencies. That means the BFS can use your tax refund to repay: Past-due child or spousal support.
Will The Bankruptcy Court Take Your Tax Refund?
Who can garnish your state tax refund?
The IRS can garnish refunds to satisfy unpaid federal taxes, while state tax agencies can do the same for unpaid state taxes. Specific creditors, such as those collecting child support or student loan debt, may also have the authority to garnish tax refunds.
Can a repo take your tax return?
No, they should not garnish your IRS tax return for the judgment. If they do, and you filed a joint return and are not responsible for your spouse's debt, you are entitled to request your portion of the refund back from the IRS. You may file a claim for this amount by filing Form 8379 (PDF), Injured Spouse Allocation.
Can a debt collector take my tax refund?
Private creditors usually cannot intercept a tax refund before it reaches someone. However, creditors could access the funds deposited if they have a judgment and a writ of levy.
What is a hardship refund?
Overall, an IRS Hardship Refund Request serves as a mechanism for taxpayers experiencing severe financial hardship to seek relief from the burden of withheld funds and address immediate financial needs.
Who can legally ask for your tax return?
State Tax Agencies and Local Governments: State agencies and local governments must file a written request for federal tax information if not already authorized by the taxpayer.
How much of your tax refund can be garnished?
However, once your refund is paid to you and deposited in your bank account either electronically or manually, the money can be garnished. The creditor will take the full amount owed.
How can I stop the IRS from taking my refund?
If you have an objection to the debt, you have the right to request a review of your objection. If you're successful, your tax refund and other federal payments will not be offset, or the amount being offset may be reduced.
How do you know if your refund was taken?
Tracking the status of a tax refund is easy with the Where's My Refund? tool. It's available anytime on IRS.gov or through the IRS2Go App. Taxpayers can start checking their refund status within 24 hours after an e-filed return is received.
Can I sue the IRS for holding my refund?
Generally, if you fully paid the tax and the IRS denies your tax refund claim, or if the IRS takes no action on the claim within six months, then you may file a refund suit. You can file a suit in a United States District Court or the United States Court of Federal Claims.
What is federal law regarding refunds?
Federally, retailers must accept returns under two basic scenarios. First, federal law requires refunds if the product is defective. Small variations or cosmetic defects might not legally require a refund. But significant problems with the product's safety or functionality could conflict with the product's advertising.
How long do you have to pay what you owe in taxes?
The IRS will provide taxpayers up to 180 days to pay their full tax balance. Fees or cost: There's no fee to request the extension. There is a penalty of 0.5% per month on the unpaid balance.
Who qualifies for IRS hardship?
Income and necessary living expenses: The IRS compares your income against allowable living expenses, which include housing, utilities, food, clothing, transportation and healthcare. If your income barely covers or falls short of these basic expenses, you may qualify for hardship status.
Is the IRS forgiving tax debt?
The IRS has a limited window to collect unpaid taxes — which is generally 10 years from the date the tax debt was assessed. If the IRS cannot collect the full amount within this period, the remaining balance is forgiven. This is known as the "collection statute expiration date" (CSED).
Will the IRS take my tax refund if I owe them money?
If you owe a federal tax debt from a prior tax year, a debt to another federal agency, or certain debts under state law, the IRS may keep (offset) some or all your tax refund to pay your debt. In fact, in many situations the IRS is legally required to forward your refund to pay the debt.
How to find out if your tax refund is being garnished?
Individuals may call 800-304-3107 with questions about a delinquent debt. My spouse and I filed a joint tax return and our refund was offset for a debt that my spouse owes.
Can state debt take a federal refund?
State tax-collecting departments (often called the Department of Revenue) send information about delinquent state income tax debt to TOP. By law, TOP may offset a federal tax refund to collect that money owed to the states.
Should I pay a debt collector?
This depends on the specific situation you're in. If the debt is still with the original creditor, you're better off paying them. However, if the original creditor has sold the debt to a collection agency, it is likely simpler to pay the collection agency directly.
Can the IRS repo your car?
An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money in your bank or other financial account, seize and sell your vehicle(s), real estate and other personal property.
Can probation take your tax refund?
the probation has nothing to do with the tax refund - the only reason it would be withheld or garnished is if you have a restitution applied to your probation or if there is another type of lien against you.
What is the definition of a tax foreclosure?
Foreclosure is a legal proceeding by which the county enforces payment of real property taxes. The county acquires legal title to a property if the taxes aren't paid by a certain date.