Can You Use Your Federal Tax Refund to Pay Owed Child Support

Child support payments are court-ordered payments that a parent must make to financially maintain their child. The non-custodial parent often makes child support payments. Owed/back child support payments are those that were due but were not received.

Is Child Support Required?

Yes. Child support arrears can have catastrophic implications. The fines imposed vary depending on whether the parent was unable or refused to pay.

The Deadbeat Parents Punishment Act makes willfully failing to pay child support payments a federal offense. Willful behavior encompasses any behaviors that appear to be taken to avoid child support payments. This includes activities like migrating to another state to avoid paying child support payments.

However, in order for the parent to be charged with a federal crime under the Deadbeat Parents Punishment Act, additional conditions must be completed.

For example, the parent must have either not paid child support for more than a year or not paid more than $5,000 in child support payments. Furthermore, even if the failure to pay was unintentional, failing to pay child support can have substantial consequences.

Failure to pay, for example, can result in an arrest warrant. In other words, non-custodial parents who fail to pay child support may face jail time.

Who Is Responsible for Child Support?

When parents do not share physical custody equally, or when the child resides with one parent more than half of the time, the parent with whom the child spends the least amount of time is expected to pay child support.

Child support can be issued against either a mother or a father. It is not essential for a parent to be forced to pay child support if the parents were never married.

In rare circumstances, there may be a disagreement about who the child’s biological father is. In such cases, the court will normally order a paternity test before calculating and issuing child support.

Adoptive parents will be subject to child support regulations; however, step-parents are not required to pay child support to their step-children unless they adopt.

How is the Child Support Amount Determined?

Each state has its own set of criteria for calculating the specific child support payment in each case. The court determines the amount of support payments based on the unique circumstances of the parents who will be paying.

The guidelines will normally provide the court with a range, and the judge will then be able to order an amount within that range. Some states allow judges a great deal of leeway in establishing the ultimate amount, while others require the court to adhere to very rigid rules.

Each situation must consider certain criteria when calculating the final child support obligation.

These criteria typically include the child’s specialized demands, such as healthcare needs and medical expenses, schooling, childcare, and other special needs, how many children the parent is expected to support, the income of the custodial parent in comparison to that of the other parent, and the non-custodial parent’s ability to pay.

In the event of divorce, the court may take into account the child’s standard of living prior to the divorce or separation.

Each parent will be expected to submit financial information to the court as part of the process.

This is typically presented in the form of a financial statement that details all monthly income and expenses. The court calculates the amount of child support owed each month using income information and the amount of time each parent spends with the kid according to any custody arrangement and visitation schedule, as well as a child support calculator.

What Exactly are Federal Tax Refunds?

Federal tax refund funds are funds refunded to you because you paid more in taxes than you owe. In short, your federal tax refund is your money to spend in any way you see fit. You are able to utilize the money from your federal tax refund to pay back child support.

What Happens if I Don’t Pay My Owed/Returned Child Support?

If you owe child support, the federal government has the authority to “intercept” your federal tax refund and use it to pay your owed/back child support.

In fact, the federal government has the authority to seize a portion or all of the non-custodial parent’s federal tax refund.

However, the Federal Tax Refund Offset Program is only available to parents who meet the following criteria:

• On a TANF (Temporary Assistance for Needy Families) case, the non-custodial parent must owe $150 or more; OR
• In a non-TANF case, the non-custodial parent must owe $500 or more.

What Are Modifications to Child Support Payments?

In some cases, a parent may be entitled to petition the court to amend a child support order. Typically, the parent must demonstrate that their circumstances have changed. The change in circumstances must have an impact on the child’s ability to pay or needs.

While the court will examine a change in circumstances and how it impacts the child support order, a custodial parent cannot unilaterally decide to incur a big expense for the child and then require the other parent to contribute.

This involves deciding whether or not to send the child to a private school. Courts will examine each circumstance on an individual basis to establish what portion, if any, of a new expense each parent is responsible for paying.

What Are Some Other Child Support Considerations?

The court may consider any relevant information when determining a parent’s support duty. The court will often begin by looking at each parent’s gross income. Still, it will also consider taxes, social security deductions, healthcare payments, union dues, mandatory professional license fees, and any other child support obligations the parent may have.

Increased considerations may include additional fees incurred by one parent for their own education or financial commitments for elderly or disabled family members. In addition to their income or pay, the court may take into account bonuses or commissions obtained.

Some courts may not stop at income considerations. In some cases, the court may weigh a parent’s ability to earn against their actual wages.

For example, a parent who earns $50,000 but has the potential to earn $100,000 may be required to pay child support based on the larger sum. This is to prevent non-custodial parents from purposefully remaining unemployed in order to reduce their support obligation.

In rare circumstances, parents may be able to reach an agreement regarding child support payments. However, in virtually every circumstance, the arrangement will need to be approved by a judge since the judge must ensure that the child’s best interests are satisfied.

How Soon Do You Have to Pay Past-Due Child Support?

The child support order will include the child support payment due date. Any payment received after the due date will be considered late. It is in your best advantage to pay by the child support order’s due date.

Should I Consult a Child Support Lawyer If I Want to Wait for My Refund?

Failure to make child support payments on time can have major ramifications for the non-custodial parent. On the other hand, getting through the numerous agencies and the court system can be a stressful ordeal.

Consult a child support lawyer right away if you need assistance negotiating an extended due date.