When it comes to overdue child support payments, the government does not fool around. Creditors are not allowed to take your tax refund check directly from the government, but if you owe money for child support, the government makes an exception to this rule. Moreover, other assets you own and benefits owed to you can also be taken to make up for your late child support payments.
Tax Refund Check Garnishment
If you are in arrears on your child support payments, your tax refund check can be seized in two separate ways. Your ex-spouse can request that the government directly seize your tax refund, in which case you will not receive a refund check from the government. If you do receive a refund check, your money can be garnished from your bank account once you deposit it.
Treasury Refund Offset Program
Tax refund checks are sent by the U.S. Department of Treasury. Congress has authorized the Treasury Department to manage the federal Refund Offset Program. This program can withhold your tax refund money if you owe back taxes to the federal government or your state government as well as back child support payments.
Garnishing Benefits
If you receive a financial judgment against you, your creditors can legally take, or garnish, some of your assets to make good on your unpaid debts. Certain benefits are protected from creditors, including Social Security money, money you hold in your retirement accounts, and other state and federal benefit money. The government makes an exception to these exemptions, however, if you owe money for child support.
Wage Garnishment and Child Support
If you owe child support money, a portion of your wages can also be garnished. The Consumer Credit Protection Act sets limits on how much of your pay can be garnished to pay your debts. In most cases, your creditors can seize only 25 percent of your paycheck. If you owe money for child support, however, 50 percent of your pay can be garnished if you are currently supporting a spouse or other children, and 60 percent if you are not supporting other dependents.
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