When it comes time to file income tax returns, some people are afraid to file them. Why would anyone be scared to file income tax returns if they expect a refund? There are many reasons, but one of those reasons is fear that a creditor might be able to take their refund before they can get their hands on it.
 
It is important to understand that private collection agencies do not have the authority to intercept, garnish, or offset your income tax refund.

Who Can Offset My Income Tax Refund?

  • State and federal government agencies can take your refunds for the following debts:
  • Past IRS tax debt
  • Past due child support
  • Debts for other federal agencies (such as defaulted student loans)
  • Past due state income taxes
  • Unemployment compensation you are required to pay back

 

In the above cases, the income tax refund will be offset and sent to the respective agency. If you are wondering if your income tax refund will be offset, you can call the IRS Refund Offset Hotline at 800-304-3107. You can only request information about your own social security number. 

Can a Credit Card Company with a Judgment Against Me Take My Income Tax Refund?

The simple answer is: No. A creditor cannot take your income tax refund to satisfy a judgment. However, creditors that have obtained judgments do have the ability to levy bank accounts. If a credit card company has a levy on your bank account to collect on the judgment against you, your income tax refund can be taken the moment it hits your bank account.  Are You Considering Filing For Bankruptcy? If you feel bankruptcy is the best option for your financial situation you need to speak with an experienced bankruptcy lawyer as soon as possible. Please contact us online or call our office directly at 888.348.2616 to schedule your free consultation.

Are You Considering Filing For Bankruptcy?

If you feel bankruptcy is the best option for your financial situation you need to speak with an experienced bankruptcy lawyer as soon as possible. Please contact us online or call our office directly at 888.348.2616 to schedule your free consultation.

James Roswold
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James Roswold is a Kansas & Missouri personal injury, workers comp, and medical malpractice attorney.