Can My Tax Return Be Held if I’m Late Paying Child Support?
March 9, 2022
Child support is often a part of the child custody agreement, but not every parent responsible for paying is consistent with their payments. Sometimes circumstances change and the parent responsible for paying child support has trouble doing so. Sometimes disagreements between co-parents can cause payment delays out of spite, but both scenarios are in violation of the court order, and your tax return can be held if you are behind in paying child support.
Your Responsibilities in the Child Custody Agreement
When you go through the child custody agreement, child support will be outlined, including what you are responsible to pay and when you are responsible for paying it. This is a court order, and if you don’t pay your child support, you are in violation of that court order. No matter what you think of the child custody agreement, or what is happening to you financially, you have a court ordered responsibility to fulfill. If the circumstances are out of your control, this is a serious matter that can’t be ignored. Speaking with your attorney right away about why you are unable to pay is important.
What Could Cause My Tax Return to be Held?
If you are overdue on your child support payments and the state child support enforcement office has reported this to the Treasury Department, the IRS will take your tax refund to cover the arrears. This is called a tax refund seizure. The IRS will give the tax return money to the appropriate agency, which will then pass it on to the child and co-parent.
Are Any Other Payments at Risk?
CARES Act payments (Coronavirus Aid, Relief, and Economic Security Act) can also be held. If you qualify for a stimulus check based on your income, but you are on the Treasury Offset list for unpaid child support, your stimulus check will be reduced by the amount you owe in back child support.
What Do I Do if I Think My Refund will be Held?
If you have back child support payments due and you are on the Treasury Offset list, you will receive a notice in advance. If you receive a notice, you can take the opportunity to minimize the effect of the seizure. You can contact the court through your attorney to see if you can make arrangements for your back child support and a new amount going forward.
What Happens if I Can’t Pay Child Support?
The best way to avoid having your tax refund held is to pay your child support on time. Ignoring your child support obligations or failing to make payments on time could have bigger implications than just having your tax refund held. You can get a fine, be held in contempt, and even face other legal action.
If you can’t pay your child support due to extenuating circumstances, there are things you can do. You can go back to the court, using your new circumstances, to ask that the child support amount be reduced and to make a plan for paying back support owed.
Paying child support can be a challenge when living on a single income and during difficult times, but there are ways to get help before your tax return or wages are withheld. If you’re having trouble paying your child support payments and thought there was nothing you can do about it, contact my office today.