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.
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.
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?
Not directly. Once the funds have been deposited into a bank account a judgment creditor could levy the account for the debt owed. There are several factors that come into play when it relates to the attachment of a bank account by judgment creditors. For example, how the account is set up, JT, JTWRS, TBE, and so forth. The majority of U.S. states only allow a creditor to levy and account once. After that the creditor has to return to court and have the judgment refiled as a second levy if the full amount of the debt was not obtained in the original action.
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.
If you are not delinquent with your student loan, your federal income tax refund will not be garnished.
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.
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.
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.
No if it is for creditor debt. Yes if it is for child support or tax arrearages.
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.
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.
No, when filing for the state income taxes, you will receive your federal income tax refund as well as your state income tax refund.
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.
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.)
Yes. State refund must be claimed as income on your federal return.
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.
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.