If you owe money to a credit card company, they cannot garnish your refund to cover your debt. Only the government can garnish your tax refund, and only for debts you owe to the government like unpaid state or federal taxes, unpaid federal student loans, or child support.

Can a Judgement be taken from tax refund?

If you are behind on your credit payments, creditors will often do whatever is necessary to secure repayment of the debt, which can include filing a lawsuit against you in court to obtain a judgment. But when it comes to your tax refund, the IRS won’t allow a private creditor to intercept or garnish it.

Can a creditor take your tax refund if you owe money?

If you directly deposit your IRS tax refund into your bank account and the creditor has legal access to your account as part of the judgement, they could technically take your refund. Only federal and state government agencies can take your tax refund to offset a debt that you owe.

Can a debt collector seize your tax refund?

The Internal Revenue Service (IRS) allows debt collectors to intercept your tax refund only under special circumstances. You just need to know what those circumstances are, and avoid them. When can a debt collection agency seize your federal tax refund?

Can a federal government take your tax refund?

If you’re expecting a tax refund but have concerns about creditors garnishing it, you may be worrying too much. Federal law allows only state and federal government agencies (not individual or private creditors) to take your refund as payment toward a debt. However, once you deposit the refund into your bank account, these rules no longer apply.

Can a credit card company take your tax refund?

Many other types of debt involving private creditors such as banks or credit card companies, not covered by the offset regulations, and therefore your tax refund cannot be seized by these creditors. Certain conditions must be met before an eligible creditor can use TOP for collection of debt. The debt usually needs to be at least 90 days past due.