Can credit card creditors take your income tax refund?
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).
30 people found this useful
Do you have to send the credit card company your deceased mother's income tax refund like they say you do They say they contacted the IRS to have it sent to them but the check still came to you?
Answer . DO NOT send them the IRS refund check under any circumstances. An IRS refund is considered an asset and should be relinquished to the probate court as such. If the state does not require probate procedures in this specific case, contact the IRS office for instructions on the proper proce…dure concerning the refund. Do not endorse the check or attempt to cash or deposit it in an account.. Answer . And file a FDCPA complaint against the credit card company that told you that. ( Full Answer )
Usually 3 working day but no more than five . Answer . It certainly shouldn't take more than one full billing cycle.
Answer . A creditor can turn you over to collections and report you to the credit reporting agencies. Depending on what type of credit card you are talking about, the creditor can also demand return of items purchased on the card (such as an appliance store account).\n. \nIf you are getting har…assing phone calls at home or work (yes, they are allowed to call you at work), you can send them a written letter stating that you no longer want them to call you at home or work (sent via registered mail with return receipt). The creditor would then be allowed to call you one more time to verify receipt of your letter. Creditors are also not allowed to call you before 7am or after 9pm. Due to privacy isses, creditors are not allowed to tell your employer or others not listed on the credit account why they are calling. ( Full Answer )
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 w…ith a tax attorney. ( Full Answer )
http://www.telegram.com/apps/pbcs.dll/article?AID=/20070325/NEWS/703250497/1052/RSS01 "On Oct. 22, 1986, President Ronald Reagan signed into law the Tax Reform Act of 1986. Reagan called the 829-page, 33-pound bill 'the most sweeping overhaul of the tax code in our nation's history.' "The …new code gradually phased out all deductions for interest paid on car loans, charge-account purchases, vacations and anything else that fell under what the law termed 'consumer loans.' ( Full Answer )
When you are in a chapter 13 bankruptcy and have to turn over your income tax refund does this include earned income credit?
Answer . Probably. It too is an asset. And, if you had savings or an investment with interest available, that too could be used. However, from discussions here it seems tax refunds are not always seized as part of the BK process.
Yes, they need a court order. In fact, have to sue you for whatever amount. If they demanded you give it to them simply because you owe them money. You don't have to give it to them, but that will work against you in court. The best thing to do if you owe money to any business or are court ordered t…o pay money to anyone, is to do so. Or face the possibility of time in jail. Good luck. ( Full Answer )
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 t…he 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. ( Full Answer )
No, income tax refunds can not be held for credit card companies. Speak with an attorney about your specific situation. If you can not find an attorney, contact your local Bar association and they will refer you to one.
You could pay them. . To pay your debts as you promised you would when you made them, you committed to making "your" assets theirs...now do it without being forced to. (And another way to look at it, is it isn't your taxes...you already gave them away when you promised to pay people.) Improved: Y…ou could also just adjust your withholding such that your refund is minimal or you end up owing a small amount when you file. That way, there is nothing to seize. You really should be doing this anyway, since an income tax refund is in essence an interest free loan from you to the government. ( Full Answer )
Not just any creditor can intercept your tax refund, but there are certain instances where your money can be seized to secure uncollected debts. Your federal refund can be intercepted for debts ascertained by the Internal Revenue Service, certain federally guaranteed student loans, past due child …support, or monies owed to any government or state agency (such as payback of food stamps or even indebtedness to the state department of revenue). Interception of state refunds vary by state, and some instances where your state refund may be applied to a debt may include but is not limited to taxes owed to the state, hospital bills or even past due utility bills. ( Full Answer )
Until discharge. (The length of the ch 13 plan.) Speak with an attorney about your specific situation. If you can not find an attorney, contact your local Bar association and they will refer you to one.
If its a refund, then there is nothing to be garnished. If you mean unpaid taxes...yes, the irs can and will garnish your wages. They can also wipe out your bank account without any notice to you. ans Garnishment is not the correct term, but I understand what you mean. The IRS and… some other tax authorities can directly re-direct the refund for other debts you may owe them or certain Courts (child support specifically a common one too). Other creditors cannot attach or get the check directly. HOWEVER, as soon as it is deposited, it i no longer tax or governmental in any way, and it is fair game for anyone with a judgement/right to collect the debt. ( Full Answer )
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.
Yes, your Federal Tax Refund can be garnished by the state if you owe backtaxes. It can also be taken for child support and or student loans.. In addition to that depending on the state your bank accounts, retirement accounts and / or wages can be garnished. Usually a State garnishment will take be…tween 10% and 25% of your paycheck.. The best thing to do is to be proactive, contact the State and enter into an official agreement to start paying back on the tax liability.. Hope this helps.. Roger Hadad, Effectur Inc., www.irs101.blogspot.com ( Full Answer )
If EIC earned income credit is more than refund can student loans take your taxes Bankruptcy and other agencies cannot take your tax refund when eic is greater in amount than that of the refund?
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.
Yes, but there are ways to fight this. Find a veterans service organization in your area and talk to the veteran service officer. They should be able to get answers.
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. ( Full Answer )
Yes, certainly. Anyone can garnish any asset you have, as long as they have a court order to do so. That's what protection from search or seizure without due process of the law is all about. In this case, due process would involve you being served notice that the case was going before a court (givin…g you the chance to tell your side of the story), and the judge either will, or will not give the order to garnish. One thing for sure, if you don't appear, you lost. ( Full Answer )
There may be no recourse. Apply for unemployment, take temporary jobs and so on. Unfortunately there are consequences that you have to live through for past behavior. If you keep plugging away, you will repay the creditors and come out okay. You possibly can't. You owe the creditors - pure and s…imple - you acknowledge that a debt is owed to someone else. Put yourself in the debtors shoes ... they too have bills to pay, employees wages to pay, etc ... One needs to do whatever job is necessary in order to meet their monetary obligations, even if that means flipping burgers at the local fast food place. ( Full Answer )
I have been searching for that answer as well!! Please post if you find out! . IRS says 8-12 weeks
Most states accept credit card payments through one of these web sites: http://www.officialpayments.com http://www.pay1040.com Note that there is a service charge, which varies by state, for using these sites.
New Answer: No they can't. You can get it back. I just got off the phone with someone from NEDAP who told me that student loan refunds are exempt and that there is also some law that prohibits them from taking money out of your account (something about low income) if you have less than $1700 in your… account anyway that's not student loan money. Get it back. And Google NEDAP. They are extremely helpful. Previous answer: I am in the process of researching the same question. Here is what I have deciphered. If you have judgment against you ie. creditors have taken you to court and won, they have the right to go into your bank accounts and take money. So any bank account with your name on it is fair game, even if its tied to your school in some way. Most schools offer different ways of receiving your refund. My advice would be to get it in a paper check and cash it, or deposit it into a trusted persons(parents) account and get money from then when needed. Just remember that any account with your name attached can potently be drained down to 0$. ( Full Answer )
You cannot put IRS in with your bankruptcy. She still owes this bill. I am speaking from experience, I still owe them 5k after bankruptcy.
Go to the IRS web site and on the site is a link to the page to check on the refund. You will need your social security number, the exact amount of refund, and filing status.
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?
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.
If credit card has judgment against your wife can they take your tax refund if you are sole early but file jointly?
No. Only legal government debts can be used against your refund in the FMS refund offset program
Could possibly be the Making Work Pay and Government Retiree Credits using the schedule M of the 1040 tax form for this purpose. Go to the IRS gov website and use the search box for schedule M and choose instruction line by line instructions are available for you to use for this purpose if you QUA…LIFIED for the MWPTC and did NOT receive it. The credits may give you a refund even if you do not owe tax. ( Full Answer )
If the creditor is a government agency, then yes. If the creditor has not won a court settlement to garnish your wages, then no.
Yes - the refund is an asset - which the card company can use to offset your debt !
You can pay your taxes with a credit or debit card at www.payUSAtax.com. This service allows you to pay your Federal taxes electronically and is a service of RBS WorldPay in agreement with the IRS. A convenience fee of 1.95% of the tax payment amount (or $3.89 for Visa debit and ATM/Debit transactio…ns) is charged by RBS WorldPay's service provider, Value Payment Systems, for using this service. ( Full Answer )
the truth is Yes they can because if you own more than you get thell take your tax refund check P.S. no offence
Not if you did not have some income tax withheld from some type of income or if you are qualified for some type of refundable tax credit.
A creditor can put a lien on federal income tax refunds and usuallywill when the debt is that of a student loan or child support.Other creditors can if the right paperwork is filed within aspecified time frame to the IRS.
For a mailed 1040 income tax return and no direct deposit selected. IF you have any refund amount due you then you would receive a paper check IF you used your correct mailing address on your correctly completed income tax return. If your income tax has been completed correctly and filed to the co…rrect IRS address and IF the IRS accepts your income tax return as you filed it. If your income tax return was NOT completed CORRECTLY and the IRS does NOT accept it as you filed it then you will receive a letter or notice with some contact information and some information telling you what you will have to do to correct the original filed income tax return. Paper Return Processing Time If you file a complete and accurate paper tax return, your refund will usually be issued within six weeks from the date it is received. Returns Filed Electronically If you filed electronically, your refund will normally be issued within three weeks after the acknowledgment date. Check the Status Online The fastest and easiest way to find out about your current year refund is to go to the IRS gov web site and click and on left side of the page under Online Services choose the Check on Your Refund "Where's My Refund?" link at the IRS.gov home page. To check the status online you will need your Social Security number, filing status and the exact whole dollar amount of your refund shown on your return. Check the Status By Phone You can check the status of your refund by calling the IRS Refund Hotline at 800--829--1954. When you call, you will need to provide your Social Security number, your filing status and the exact whole dollar amount of the refund shown on your return. Click on the below Related Link ( Full Answer )
Can the credit card co take your state income tax return you file joint with your husband who is retired?
No. A creditor cannot seize any property belonging to a debtor until said creditor sues the debtor(s) and receives a judgment order.
A tax refund is not income as defined by the IRS. However, if the taxes paid were claimed as a deduction in the income tax for that year, there is an adjustment to the AGI. Some states provide for counting this in the following year.
no you may not ans Actually yes you can. The Earned Income Credit (or EIC) may be paid as a refund even if someone had no other income to report and pay on. addition = If you have no earned income, you would not qualify for the earned income credit.
YES they can, I owed the Military Star Card money, I was paying regularly, the next thing I knew I couldn't log in to pay it (it said the account was closed), and I had moved away, the closest exchange is 110 miles, I tried calling and never got any resolution that way because they couldn't locate …my account either. Then the following year my tax return never showed up, when I investigated I found out that the star card people took my tax return. They are allowed to because they are a Federal Government financial institution. ( Full Answer )
yes they can ive seen it done to a buddy before he never saw his tax return he called the IRS and come to find out a debt collector took all of his refund. ans As already answered and discussed here a zillion times- ONLY the governments can get your tax refund. Anyone saying anything e…lse is a liar. ( Full Answer )
Yes, if they obtain a judgment and file for a garnishment of your state tax refund.
The closer it is to the deadline (normally April 15) the longer your processing will take. Electronic returns may require as little as 7 to 10 days, while mailing in a paper form can extend this to 3 to 4 weeks at the start of the tax season (January) and up to 6 to 8 weeks by the middle of April. … File early to reduce your wait. (see link to IRS refund inquiry page) ( Full Answer )
You cannot get a refund if you don't file. But even if you are years late, you can still file and apply for your refund. It does not expire.
It can be. The Child Tax Credit is 2 parts. The first is non-refundable and can only reduce the tax to $0. If the full amount of the credit (generally $1000 a qualifying child) is not used, it becomes the Additional Child Tax Credit and the amount of refundable credit is calculated on Form 8812. The… amount that can be refundable will depend on the wages and other income on the return. ( Full Answer )
You can get an income tax refund by filing your taxes at companies such as H&R Block and Jackson Hewitt. You can also find local companies that offer helping you with tax preparation.
The few I've seen were completed in a few days, but I'm suresometimes issues happen that can delay them a bit longer.
It is very common for a credit/refund to take up to 6 or 8 weeks to be processed. It always takes longer to get a refund than it does for them to take the money. Where i used to prefer virtual credit cards for online transaction.
Tax refunds and tax credits provide funding for the businessstart-up and expansion by subtracting certain costs in the annualgovernment tax bill of the business. Your company may make anapplication for tax refunds of past costs or receive tax credits onfuture projects. These regulations give a finan…cial break that mayrelease your business' income permitting further development andsecurity. ( Full Answer )
You will, in the first instance need to contact the vendor (theseller) - They will need to accept that the product was notreceived. You can ask for evidence of deliver, this could be asignature, a house or business address where the items was left foryour collection. If they cannot provide this they… "should" arrangea refund to your Credit Card account - that takes about 7 days tocredit back . If they don't or wont then contact you CC company andlog a formal complaint - explain in writing what you've bought,from whom, and that delivery has not been made to you or to someonenominated by you for receipt.. Items purchased through most goodCCs have a insurance attached which allows you take claim back theservices or products which are not up to the description or notdelivered. ( Full Answer )