Skip to main content

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.
Labels:
Location: Mesa, AZ, USA

Comments

Post a Comment

Popular posts from this blog

Some Commonly Asked Small Business Tax Questions

Tax preparation is always an overwhelming process for small businesses. If you don’t hire a certified professional accountant, it can be a daunting job, and there can be a higher possibility of tax errors. As a small business owner, there are many questions related to tax, like what you can and can’t deduct on your tax return and how you can save for retirement. In this blog post, let’s look into the tax questions every small business owner puts forth. 1. What small business expenses can I deduct? It should be the foremost question you must ask for the Phoenix Tax Preparation for your small business. Consult with a CPA firm to know what you can and can’t do on your small business income tax return in this tax season. From the deduction of business startup costs to scrapping off your vehicle expenses, there are many deductions that you might be unaware of. 2. How should I calculate travel expenditure while using my car for my business? If you use your vehicle for business p...
Post a Comment
Read more

Things to Consider Before Hiring CPA Services

Accounting is a way to keep a track of your financial exchanges, this may sound simple but it is actually not. Precise accounting is very crucial for the financial well-being of your business as the right CPA small business services will help you take wise and informed financial decisions, but a wrong small business accountant can put you in financial trouble.  Whether you are planning to hire a full time  small business accountant or outsourcing your CPA small business services, you should consider the below mentioned factors:  Right qualifications A small business accountant must have a deep understanding of your business as they touch all the components. One with the right qualification will have all the required knowledge on accounting and will be able to communicate rightly with others. They will know how to troubleshoot a specific problem quickly and effectively. Must know your requirements first  Before you actually jump to the h...
Post a Comment
Read more

How Does CPA Tax accountants Differ From Other Accountants?

Introduction:- A CPA is a certified public accountant who has met specific state and education licensing requirements and passed the required exam. But, what are the main differences between CPAs and accountants?  Here’s a look at some of the differences:- Licensing - CPAs have passed rigorous testing and strict requirements for licensing in the state in which they intend to practice. These candidates must complete 150 hours of college coursework, including specific hours in upper-level accounting, auditing, and business core classes. After graduation and a year of experience under the supervision of a CPA tax accountants firm , the candidates must pass a comprehensive test of business, tax, auditing, and general accounting skills. After becoming licensed, they must take regular education classes throughout their career in order to maintain up-to-date information on issues and changes in the accounting world. Fiduciary Responsibility - Certified Public Account...
Post a Comment
Read more