A tax refund interception is the act of an agency responsible for sending tax refunds using all or part of a refund to fulfill an obligation of the taxpayer rather than sending the money to the taxpayer him/herself.
Some common obligations for which tax refunds are intercepted include outstanding taxes, student loans, child support, fines, restitution, and wage garnishments. While taxes are sometimes intercepted to pay off the balance to a government-operated collection agency, most jurisdictions do not allow refunds to be intercepted to pay a private collection agency.
In the United States, the Internal Revenue Code allows the Internal Revenue Service (IRS) to divert overpayments of taxes to satisfy other federal taxes, certain past-due support obligations, debts owed to other Federal agencies, state income tax obligations, and certain unemployment compensation debts.
A tax refund or tax rebate is a refund on taxes when the tax liability is less than the taxes paid. Taxpayers can often get a tax refund on their income tax if the tax they owe is less than the sum of the total amount of the withholding taxes and estimated taxes that they paid, plus the refundable tax credits that they claim. (Tax refunds are money given back at the end of the financial year.)
By country
United States
According to the Internal Revenue Service, 77% of tax returns filed in 2004 received a refund check, with the average refund check being $2,100. In 2011 the average tax refund was $2,913.
Taxpayers may choose to have their refund directly deposited into their bank account, have a check mailed to them, or have their refund applied to the following year's income tax. As of 2006, tax filers may now split their tax refund with direct deposit in up to three separate accounts with three different financial institutions. This has given taxpayers an opportunity to save and spend some of their refund (rather than only spend their refund).
Every year, a number of U.S. taxpayers around the country get tax refunds even if they owe zero income tax. This is due to withholding calculations and the earned income tax credit. Because withholding is calculated on an annualized basis, an individual just entering the work force or unemployed for a long period of time will have more tax than is owed withheld.
Refund anticipation loans are a common means to receive a tax refund early, but at the expense of high fees that can reach over 2,000% annual interest. In the 1990s, refunds could take as long as twelve weeks to come back to the taxpayer; however, the average time for a refund is now six weeks, with refunds from electronically filed returns coming in three weeks.
In cases of nonpayment, Texas law provides several enforcement mechanisms, including income withholding, tax refund intercepts, and license suspensions.
For enforcement, Leeser outlines the various methods available to ensure compliance with child support orders, including wage garnishment, tax refund interception, and even license suspensions ... About Family Matters Law FirmPLLC. ... Embeds. ... GMB. ... Email.
The article delves into how child support is calculated and enforced ...Luciano explains that enforcement can include wage garnishment, property seizure, loss of licenses, interception of tax refunds, and other legal actions ... Embeds.. Youtube Video.. GMB..
30 ... This means the government can garnish wages (without a court order) to go toward paying back the loan, intercept tax refunds, and seize portions of Social Security checks and other benefit payments ... One thing to note ... The U.S ... In August, the U.S ... 15 ... .
30 ... What happens if I don't make my payments? ... This means the government can garnish wages (without a court order) to go towards paying back the loan, intercept tax refunds, and seize portions of Social Security checks and other benefit payments ... 30 ... ——.
What was the on-ramp period? ... This means the government can garnish wages (without a court order) to go towards paying back the loan, intercept tax refunds, and seize portions of Social Security checks and other benefit payments ... One thing to note ... .
“In that case, the CalFresh office can take steps to recoup the CalFresh benefits by intercepting state or federal tax refunds, suing the person, or other means such as taking unemployment compensation benefits or Social Security payments.”.
... debt status, the bill would also prohibit medical debt from being reported to credit bureaus and would stop medical debt creditors from intercepting a patient’s tax refunds through revenue recapture.
... debt status, the bill would also prohibit medical debt from being reported to credit bureaus and would stop medical debt creditors from intercepting a patient's tax refunds through revenue recapture.
... obtain against them can haunt the patients for years, making it difficult for them to obtain a mortgage, rent a home or obtain a job, and it can allow the state to intercept their tax refunds.
Michigan’s automated unemployment computer system, known as MiDAS, improperly flagged thousands of accounts, prompting the agency to garnish wages, intercept tax refunds and force claimants to repay benefits.
GM wants $121M refund from The City for Cruise-linked taxes, penalties. The owner of Cruise wants San Francisco to refund more than $121 million in taxes, interest and penalties, it said in an amended lawsuit filed against The City in stat….
“TRECs is a program that allows counties to collect outstanding debts owed to local units of government by intercepting personal state income tax refunds,” according to an online explanation from https.//lawrencecounty.in.gov/.
... who works all hours to pay what he can for treatment of diabetes that cost him one leg already; the uninsured woman whose emergency room debt entitled the hospital to intercept her state tax refund.
San Francisco Examiner
03 Jan 2024
San Francisco Examiner
03 Jan 2024