Can My Tax Refund be Garnished?

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The Treasury Offset Program (TOP) identifies people and businesses who have overdue debts and uses money that federal agencies are paying, such as a federal income tax refund, to offset those debts.  

Can the government take your tax refund?  

The U.S. government may take your tax refund as payment if you have overdue debt owed to federal or state government agencies. The TOP helps these agencies collect what they are owed by holding back money from a federal payment to cover the debt. A tax refund is one type of federal payment that many people receive and can be garnished as a payment.  

What type of overdue payments may result in my refund being garnished? 

 There are many types of overdue payments that can result in garnishment. For instance, if you owe taxes for a prior year, but you’re expecting a tax refund in the current year, the IRS could apply your current tax refund to your past-due tax balance.   

Other types of overdue debt that could result in garnishing your tax refund include:  

  • Court-ordered child support payments  
  • Federal student loans (only if your federal loan is in default) 
  • Unemployment compensation you are required to pay back  
  • Other outstanding debts with federal agencies 

Why was my refund lower than expected? 

Your refund may have been lower than expected if you owe money to a federal or state agency and your payments are overdue. There are many reasons for this including but not limited to: 

  • Change in eligibility of previously claimed tax breaks 

 How do I know if my refund will be garnished?  

Not all debts are subject to being offset through tax refund garnishment. When you have outstanding debt, the agency you owe must contact you by letter 60 days before they send the debt to the TOP. The letter will include information about making payments, as well as how to contact the TPO agency if you have questions. Visit the IRS website for details on how to dispute a refund reduction and which agency you should contact.  

Will my refund be garnished if my spouse owes money?  

Possibly. If you and your spouse are filing jointly, your shared refund can be garnished to offset their delinquent debt. You’ll need to file IRS Form 8379, Injured Spouse Allocation Form, to get back your share of the refund.  

Can my landlord garnish my tax refund?  

No. Private individuals and creditors such as credit card companies don’t have access to your federal tax refund. However, depending on the laws in your state, private creditors may be able to access your state refund.  

Get more answers to your FAQs on tax refunds on the IRS website. 

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