answersLogoWhite
Taxes and Tax Preparation
Debt Consolidation
Income Taxes
Tax Refunds

Can a creditor take your federal or state income tax refund to pay a judgment?


Top Answer
User Avatar
Wiki User
Answered 2012-02-14 13:57:08

If the judgment is for state or federal taxes then any refund is subject to seizure by the agency holding the judgment. If it is a creditor judgment, a tax refund would only be subject to attachment if it were placed in a bank account that was being levied by the judgment creditor. I would consult with a tax attorney.

001
๐Ÿ™
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
๐Ÿ˜‚
0
User Avatar

Your Answer

Still Have Questions?

Related Questions

How do you know if your tax refund will be intercepted?

You will receive a judgment from the creditor a year before they intercept only your state income tax. The judgment will say income tax intercept on it. A federal agency can intercept your federal taxes also.


Can a credit card company take your income tax return?

A creditor cannot seize a federal tax refund, but the creditor can file a lawsuit and if they are awarded a judgment they can levy the bank account in which a tax refund is deposited.


With a judgment lien can a tax refund and bank accounts be garnished?

If the judgment is for state or federal taxes then any refund is subject to seizure by the agency holding the judgment. If it is a creditor judgment, a tax refund would only be subject to attachment if it were placed in a bank account that was being levied by the judgment creditor.


In Texas can a creditor judgment for an unpaid phone bill be enforced as a wage or tax refund garnishment or a bank account levy?

A judgment creditor can levy a bank account even if it is joint. A judgment creditor can only garnish income if there is no other way to recover monies owed. A judgment creditor can place a lien against real property but cannot perfect the lien as a forced sale of a primary residence. A judgment creditor cannot seize a tax refund.


In Texas can a judgment be used to seize an income tax refund?

No if it is for creditor debt. Yes if it is for child support or tax arrearages.


Can a creditor put a lien on my federal income tax refund?

A creditor can put a lien on federal income tax refunds and usually will when the debt is that of a student loan or child support. Other creditors can if the right paperwork is filed within a specified time frame to the IRS.


Is your income tax return qualify as income?

In the U.S., your federal income tax refund does not count as taxable income for the next year. If you receive a refund from your state, and you itemized your deductions on the federal return, then the state refund will count as income on your federal return. (If you didn't itemize, then your state refund won't count as income.)


How do you seize a personal tax refund after obtaining a judgment against the person in new york state?

A judgment creditor cannot seize a refund, that action is only available to the IRS, state tax agencies or state child support enforcement agency. The judgment creditor would need to levy the debtor's bank account, garnish income or enforce the judgment by other means allowed by the laws of the debtor's state.


Can the IRS garnish your income tax refund for a judgment by a payday loan business in Nevada?

No. The judgment creditor can, however, execute the judgment as a wage garnishment or bank account levy or any other methods allowed under the laws of the state.


Do you have to claim a state tax refund on your federal taxes as income?

Yes. State refund must be claimed as income on your federal return.


Can a creditor or individual use a judgment to garnish a debtor's federal and state tax refund?

If I remember right, you can. * No. Only government agencies can seize federal or state tax refunds for matters such as tax or child support arrearages. A creditor or lender would need to execute a judgment against the debtor's bank account if the state laws where the account is held allows the action.


When can a federal tax return be seized for debt?

Federal tax refunds can be seized by the IRS for tax arrearages without the normal legal procedures being used. Federal and state tax refunds can be seized by a state child enforcement agency for court ordered child support arrearages. Tax refunds cannot be seized for creditor debt, for example, a judgment for non payment of a credit card account. But, once the refund is placed in a bank account it can be subject to levy by a judgment creditor. The Federal Government can also offset your federal tax refund to pay a student loan debt.


Do you have to claim federal tax refund on Oregon state return?

You do not have to report any income tax refund on any tax forms, it is not income.


Can creditors take your federal income tax refund?

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.


Do you have to claim state refund on federal tax as income?

If you took the amount as a deduction as State taxes on your federal return originally (say refund is from a prior year), then getting it back now is reported as income.


Do you pay taxes on your income tax refund?

A Federal income tax refund is not taxable income (for state or Federal purposes) in the year a taxpayer receives it.A state income tax refund for a previous tax year, however, may be another story. It will be Federal taxable income in the year in which the taxpayer receives the refund, if he itemized deductions on the previous year's Federal income tax return.Suppose a taxpayer files his 2010 Form 1040, and itemizes his deductions. Following the instructions for the 1040, he deducts $500 withheld as state income tax (shown on his W-2) in computing his 2010 Federal taxable income. He then prepares his state income tax return and discovers that he owes only $435 in state income tax, and is due a refund of $65 (the difference between the $500 withheld and his actual liability of $435). His actual state tax liability was only $435, but he had deducted $500 from his 2010 Federal taxable income, so when he gets the $65 refund in 2011, he must include it in 2011 income for Federal income tax purposes to make up the difference.However, if the state refund was for a tax year for which the taxpayer did not itemize deductions on his Federal tax refund (i.e., he took the standard deduction), it is not taxable income to him.


Do you pay taxes on income tax return?

I assume that this question is about an income tax refund, and not about an income tax return (which is the form you file with income tax authorities every year, along with any income taxes you still owe.)A Federal income tax refund is not taxable income (for state or Federal purposes) in the year a taxpayer receives it.A state income tax refund for a previous tax year, however, may be another story. It will be Federal taxable income in the year in which the taxpayer receives the refund, if he itemized deductions on the previous year's Federal income tax return.Suppose a taxpayer files his 2010 Form 1040, and itemizes his deductions. Following the instructions for the 1040, he deducts $500 withheld as state income tax (shown on his W-2) in computing his 2010 Federal taxable income. He then prepares his state income tax return and discovers that he owes only $435 in state income tax, and is due a refund of $65 (the difference between the $500 withheld and his actual liability of $435). His actual state tax liability was only $435, but he had deducted $500 from his 2010 Federal taxable income, so when he gets the $65 refund in 2011, he must include it in 2011 income for Federal income tax purposes to make up the difference.However, if the state refund was for a tax year for which the taxpayer did not itemize deductions on his Federal tax refund (i.e., he took the standard deduction), it is not taxable income to him.


Will Georgia tax your Federal rebate money?

No. Your federal tax is not deductible from your income in determining state taxable income, hence any refund of it isn't included as taxable income.


Can the your income tax refund be garnished?

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?


Can a credit card company intercept your income tax refund if you have a judgment against you?

Yes - the refund is an asset - which the card company can use to offset your debt !


When you file your federal income tax return do also get to receive the state income tax refund as well?

yes you do


Can your tax refund be garnished for a repossesion?

No, not directly. But your bank account can be levied by a judgment creditor and any monies including tax refunds can be seized.


If your wages are garnished can they also take your tax refund?

AnswerTax refunds cannot be directly seized by a creditor judgment.The IRS can seize tax refunds without the use of due process for federal taxes owed.State and federal tax refunds can be seized for child support arrearages.


What refund comes first state or federal?

There is no exact date for either the State or Federal Income tax refund to get to you. If you file electronically, they will usually get to you at about the same time but there will not be a significant difference.


Do you have to report your income tax check?

The refund check, as income - No - for federal (it was taxed when overpaid - tax being paid with already taxed money), but a State one, yes. It was deducted from federal income.


Still have questions?