How to stop child support from taking a tax refund 2023

Preventing Child Support Garnishment of Your Tax Refund

To prevent the garnishment of your tax refund for child support arrears, it's important to understand the mechanisms behind tax refund offsets and the options available to potentially protect your refund.

Understanding Tax Refund Offsets

The Department of Treasury's Bureau of the Fiscal Service (BFS) is responsible for issuing IRS tax refunds and conducting the Treasury Offset Program (TOP). Through TOP, your refund may be reduced to offset certain debts, including past-due child support. If your debt meets the submission criteria for offset, BFS will reduce your refund to pay off the debt. A notice will be sent to you if an offset occurs, detailing the original refund amount, the offset amount, the agency receiving the payment, and contact information for the agency [Topic no. 203, Reduced refund | Internal Revenue Service].

Options to Prevent Garnishment

1. Resolve Outstanding Child Support Debts

- The most straightforward way to prevent garnishment is to ensure that you do not have any past-due child support obligations. If possible, pay off the outstanding amount before the BFS processes your tax refund.

2. Injured Spouse Allocation (Form 8379)

- If you filed a joint return and are not responsible for the child support debt owed by your spouse, you can file Form 8379, Injured Spouse Allocation. This form allows you to get back your portion of the refund that was offset [Injured spouse relief | Internal Revenue Service].

3. Offset Bypass Refund (OBR)

- If you are experiencing economic hardship and are aware of a past due federal tax obligation, you can request an OBR before the IRS applies the refund to the outstanding debt. This is a time-sensitive option and requires proof of economic hardship [How to Prevent a Refund Offset If You Are Experiencing Economic Hardship].

4. Contact the IRS or BFS

- If you believe you do not owe the child support debt or disagree with the amount taken from your refund, contact the agency listed on the notice you receive. If you did not receive a notice but suspect an offset, contact the BFS's TOP call center at 800-304-3107.

5. File Taxes Separately

- If you are married but not responsible for your spouse's child support debt, consider filing your taxes separately to avoid your refund being subject to an offset for your spouse's debts.

6. Legal Action

- In some cases, legal action may be necessary. If you believe the garnishment is in error or you have a valid claim for exemption, consult with legal counsel to explore your options.

Important Considerations

- Timing is critical, especially for options like the OBR. Act quickly if you anticipate a refund offset due to child support arrears.

- Filing Form 8379, Injured Spouse Allocation, can be done with your original joint tax return, with an amended return, or by itself after receiving an offset notice. Processing times vary depending on how and when you file the form [Injured spouse relief | Internal Revenue Service].

- If you are unsure about your eligibility for any of these options or need assistance with the process, the Taxpayer Advocate Service (TAS) can provide guidance and support [Refund Offsets - Taxpayer Advocate Service].

By understanding your rights and the available options, you can take proactive steps to prevent the garnishment of your tax refund for child support arrears.

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Sources:

Topic no. 203, Reduced refund | Internal Revenue Service 2024-08-03

Refund Offsets - Taxpayer Advocate Service 2024-08-02

Injured spouse relief | Internal Revenue Service 2024-08-03

How to Prevent a Refund Offset If You Are Experiencing Economic Hardship 2024-07-31

“Huge Detriment to Every Family”: IRS Policy Change Puts Child Support Payments in Jeopardy 2024-07-22

TAS Tax Tip: Feel like you are not responsible for a debt owed by your spouse or ex-spouse 2024-08-02

Alimony, Child Support, Court Awards, Damages 1 - Internal Revenue Service 2024-08-02

Publication 17 (2023), Your Federal Income Tax - Internal Revenue Service 2024-07-29

2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic G Receiving Advance Child Tax Credit Payments 2024-08-01