Intercepting Tax Refunds When a Parent Fails To Pay Child Support

It seems only fair that if a parent gets a tax refund but owes back child support, the back child support ought to be paid off first. Federal law states that if a parent owes child support, a state child support office can intercept that parent’s tax refund. They can give the tax refund to the custodial parent and apply it to back child support. 

For more information about collecting unpaid child support or seizing a federal or state tax refund, talk to a local child support lawyer about your rights and options.

How Can You Collect Child Support Payments From a Tax Refund?

To receive the other parent’s tax refund for back child support, you need to make sure that you enroll in your state’s tax intercept program. Contact your local child support enforcement (CSE) agency to find out about how to collect child support arrears.

State child support agencies work with various federal agencies to collect past-due child support. These agencies include:

• Office of Child Support Enforcement (OCSE)
• Internal Revenue Service (IRS)
• Financial Management Services (FMS)
• Department of the Treasury

If the noncustodial parent isn’t making payments required under their child support order, your state agency will submit a claim to the OCSE that includes the parent’s name, Social Security number, and amount of past-due support. Your ex will get a pre-offset notice about the Treasury Offset Program.

When the IRS processes the noncustodial parent’s federal tax return, they will intercept part or all of the tax refund. They forward the refund payment to the state to repay the past-due child support that your ex owes.

Tax refunds intercepted for back child support are first applied to back child support owed to the state. This includes support for periods when a child received public assistance. After paying off any balances owed to the state, the remaining refund applies to back child support owed to you.

Do You Have To Pay to Intercept Tax Refunds?

If you or your child receives Temporary Assistance for Needy Families (TANF), local child support services are generally free. If you are not on public assistance, your state may charge a fee of up to $25 to intercept a tax refund.

In some states, a lawyer can also get a payment enforcement court order requiring the interception of a state or federal tax refund for unpaid child support obligations.

Can You Intercept Other Tax Refunds for Child Support?

The federal tax intercept program also applies to federal government stimulus payments. States can also intercept stimulus payments. This included stimulus payments for the 2008 financial crisis and the 2020 and 2021 COVID-19 pandemic stimulus payments.

Many states have income tax intercept programs. These essentially work the same way as the federal tax intercept program. State child support offices can intercept parents’ state tax refunds and apply them to back child support. However, not all states have a state income tax.

Can You Intercept Tax Refunds if the Parent Remarries?

If a parent who owes child support remarries, their tax refund might not fully apply to back child support. If the parent and their new spouse file a joint tax return, the new spouse can claim their portion of the tax refund. To get that portion of the tax refund, the new spouse must file an Injured Spouse Allocation form with the IRS.

State child support offices generally hold joint tax refunds for six months before going to back child support. This gives the new spouse a chance to make an injured spouse claim to get their share of the refund.

Do Tax Refunds Go To Other Debt Before Child Support?

If the parent owes certain other government debts, the tax refund may go to those debts first before you receive anything. This includes federal student loan debts or unpaid federal income taxes.

How Can You Intercept Child Support if the Parent Doesn’t Get a Tax Refund?

The tax intercept program doesn’t help much when a parent doesn’t file their taxes or isn’t entitled to a tax refund, because there is nothing for the IRS to intercept. However, there are other ways to enforce child support orders. Parents with unpaid child support can have their driver’s license suspended. The federal government can also notify them of a passport denial for unpaid child support obligations.

Your state child support agency or child support lawyer can also go after the parent’s property or paycheck. They can put a lien on the noncustodial parent’s property or garnish their wages. For more information about how you can collect unpaid child support, talk to an experienced child support attorney today about your rights and options.