State debts State government agencies have the lowest priority when it comes to garnishing IRS refunds. But, if you’re required to return unemployment compensation payments, or you have outstanding state income tax debts, your federal refund can be garnished to repay these obligations as well.

Can a garnishment take your federal taxes?

These debts include past-due federal taxes, state income taxes, child support payments and amounts you owe to other federal agencies, such as federal student loans you fail to pay. As a result, the collection agencies that your other creditors hire to obtain payment from you cannot intercept or garnish your tax refund.

Can a bail bonds company garnish your wages?

Before a bail bonds company can seize your assets, it must win a lawsuit against you. After winning a lawsuit, the bail bonds company receives a civil judgment from the court that ultimately grants the company the ability to garnish your wages.

What happens when the IRS garnishes your wages?

When the IRS moves forward with your wage garnishment, your employer has no choice but to comply with the IRS and remit a portion of your wages to the agency to pay your tax bill.

Do you have to pay taxes before you can garnish a refund?

Before any other federal or state agency can garnish your tax refund, you must be current on your federal income tax payments. This is because the outstanding taxes you owe to the IRS must always be paid first.

Is there a wage garnishment law for bankruptcy?

The wage garnishment law specifies that its limitations on the amount of earnings that may be garnished do not apply to certain bankruptcy court orders, or to debts due for federal or state taxes. If a state wage garnishment law differs from Title III, the law resulting in the lower amount of earnings being garnished must be observed.