Tax refunds may be intercepted to repay debts that are owed to the DOR, child support debts, court ordered restitution debts, debts owed to state or local governments, debts owed to the IRS or federal government, or debts owed across states.

Is restitution considered income?

Restitution is only to offset your actual loss, it should not be considered income or profit. Court-ordered restitution payments are after-tax dollars being returned to you and are not taxable.

What happens if you dont owe taxes to the IRS?

If you owe taxes because of one of these issues, the IRS will put your refund toward the taxes. If you don’t owe any taxes, the IRS will release your refund after it completes the investigation or audit. Learn how to handle an IRS audit or back tax returns.

Why did the IRS lower my tax refund?

If this happens to you, here are six possible reasons for this often unexpected change: 1. You or your spouse owe federal or state taxes. This is one of the most common reasons the IRS lowers refunds. When you owe the IRS, the IRS has the right to take your refund to pay back taxes, penalties, and interest you owe.

When do I have to pay my taxes for 2019?

Normally, you only have until April 15 to file your previous year’s tax return and pay the IRS any money it indicates that you owe. This year, however, because of COVID-19, the deadline to both file a tax return and pay a tax bill for 2019 has been pushed back three months to July 15, 2020.

What happens if your spouse owes taxes before you were married?

If your spouse owed taxes before you were married, the IRS can take your joint refund to pay for the past taxes. If you owe the IRS or state, you’ll need to figure out: If the IRS took your joint refund to pay for your spouse’s pre-marital tax debt, consider requesting your portion of the refund. This is called an injured spouse claim.