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Few Debts That Can Make the IRS Seize Your Tax Refund

A tax refund is a refund on taxes paid to an individual or household when the actual tax liability is less than the total amount of taxes paid during the tax year. It also results from a refundable tax credit that reduces a taxpayer's bill below zero.

Here Are The Six Major Kinds Of Personal Debts That Can Result In A Tax Refund Offset With Advice About What You Can Do If It Ever Happens To You:-

Federal Income Taxes - If you owe income taxes, your refund can be taken to pay them. Whatsoever is left will be refunded to you in the way you requested on your tax return. It is possible either by direct deposit or check. You would also receive a notice from the IRS explaining why the money was withheld. If a mistake was made, you will need to take it up with the IRS. 

State Income Taxes - The feds can also withhold money from your tax refund to cover the unpaid state income taxes.

State Unemployment Compensation - If your state is of the opinion that you collected more in unemployment compensation due to fraud or failure, it can also request the U.S. Treasury to offset your tax refund.


Student Loans - If you evaded on a federally insured student loan, the government can seize your tax refund to help repay it. The Treasury Department is required to send you advance notice as well as to provide an opportunity to challenge the claim or pay it off before your refund is withheld. It is possible that your state could also withhold money from your state tax refund for this purpose. 

Child Support - In case the parents do not pay for the child support, their state’s child-support agency can ask the Treasury Department to withhold money from their tax refund. People in this situation should receive a pre-offset notice clarifying how much they owe, how the offset process works, and how to contest the debt.

Spousal Support - An award for spousal support that’s part of a child-support order can also result in a tax-refund offset if those payments are overdue. 

Conclusion:-

For any advice related to tax, you must seek assistance of Arizona based CPA from an experienced small business tax consulting services.
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Location: Mesa, AZ, USA

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