Tax refunds can only be seized for tax arrearages and/or child support arrearages, they are not subject to attachment by a judgment creditor.
Obviously if the refund is deposited in the debtor's bank account a judgment creditor can levy that account and seize any and/or all funds necessary to pay the judgment. The exception is monies that can be proven to belong to a joint account holder who is not the debtor, and monies considered exempt, such as SS, SSI, SSD.
However, each state has a minimum exempt amount for bank accounts that cannot be seized by creditors. But you have to go to court and ask to protect it. It's not tiny, either. In Virginia, for example, the first $5,000 in the bank can be exempted from seizure by a creditor. Maryland exempts $6,000. This is not a bankruptcy exemption, it's a general exemption from attachment by a judgment creditor.
The trustee may take the refund and distribute it to creditors because a tax refund is not considered an exempted asset under bankruptcy laws.
No. The IRS will take an income tax refund for back federal or state taxes, unpaid child support or alimony, student loans in default, and any unpaid federal or government debt.
Im never refund federal tax, like a boss.
Yes unless you are due a refund you will be charged penalties, interest and other charges for failing to file the federal income tax return by the due date and also for failing to pay any income taxes by the due date for the income tax return. Alternate answer: Here is what the IRS has to say: "Refund. Even if you do not have to file a tax return, you should file to get a refund if box 2 shows federal income tax withheld or if you can take the earned income credit."
No, neither federal nor state tax refunds are subject to creditor garnishment or seizure. Tax refunds can only be seized or garnished for, taxes that are due, child support, federally funded student loans and in some cases spousal maintenance (alimony).
In my experience with this, yes they can take your state return, but I do not think they are eligible to lien your federal refund.
No, the IRS already has it. They can probably take any refund to which you are entitled.
The trustee may take the refund and distribute it to creditors because a tax refund is not considered an exempted asset under bankruptcy laws.
I had a car that was financed through HSBC repossessed last year. It was repossessed. Can HSBC take my federal income tax refund for this repossession?
Depending on some things, like when the tax was paid and when the BK was filed, the refund is like any other asset and available to creditors. The trustee or court would take it and pay it to creditors according to their standing in the case.
No. The IRS will take an income tax refund for back federal or state taxes, unpaid child support or alimony, student loans in default, and any unpaid federal or government debt.
Im never refund federal tax, like a boss.
Yes unless you are due a refund you will be charged penalties, interest and other charges for failing to file the federal income tax return by the due date and also for failing to pay any income taxes by the due date for the income tax return. Alternate answer: Here is what the IRS has to say: "Refund. Even if you do not have to file a tax return, you should file to get a refund if box 2 shows federal income tax withheld or if you can take the earned income credit."
No, neither federal nor state tax refunds are subject to creditor garnishment or seizure. Tax refunds can only be seized or garnished for, taxes that are due, child support, federally funded student loans and in some cases spousal maintenance (alimony).
Any federal or state agencies (including student loan and child support) have the right to take any amount due from your refund. It has nothing to do with EIC and they have the right to take the whole refund you are due if you are in default or have a judgment against you.
federal income tax people
It can take two to three weeks for the IRS to accept your refund. It may take up to 10 business days after that to receive your deposit. (If you filed electronicly.)