Yes, the state can take your tax refund to cover past due medical bills if those bills have been turned over to a collection agency or if there is a court judgment against you. This process is often part of state laws that allow for the interception of tax refunds to satisfy debts. However, specific rules can vary by state, so it's essential to check local regulations regarding tax refund garnishment for medical debts.
It is unlikely that a tax refund would be garnished for past due medical bills. Generally refunds can only be garnished for certain things, and medical bills really aren't one. Tax refunds are garnished in instances of: child support arrearages past due federal tax past due state income tax unpaid federal student loans government program repayments However, if you deposit it into an account that they have the right to garnish, the funds lose their identity as a tax refund.
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.
No, you cannot use a Health Savings Account (HSA) to pay for past medical bills. HSAs are intended for current and future qualified medical expenses.
Ask the biller.
No
No, you cannot use FSA funds to pay for past medical bills. FSA funds can only be used for eligible medical expenses incurred during the plan year in which the funds were contributed.
No, you cannot use this year's FSA funds to pay for past medical bills. Flexible Spending Accounts (FSAs) are intended for current and future medical expenses incurred during the plan year.
No, you cannot use your FSA to pay off old medical bills. FSAs are intended for current and future medical expenses, not past debts.
Wages cannot be garnished by anyone except the courts. Organisations and individuals must apply through the courts
If they are truly past the limit, you don't want to dispute them. That would be an automatic admission that they are owed and tolls the limitation.
State child support agencies may intercept tax refunds to collect past-due child support.
Any refund due you in a future year will be applied against the amount you owe. Therefore, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. The IRS will automatically apply the refund to the taxes owed. If the refund does not take care of the tax debt you must continue the installment agreement.