Will Child Support Debt Impact Taxes this Year?
For parents in CA with child custody obligations, it’s important that they stay on top of all their payments. Most parents with child support payments are all too familiar with the potential consequences of skipping payments and letting back child support build up. These include potential loss of custody, fines, a revoked license, and more.
With tax season upon us, we wanted to go over one other potential consequence of missed child support payments in CA. Today, we’re looking at how child support debt impacts your taxes and your projected refund in 2023.
Back Child Support Impacts Tax Refunds
Once back child support crosses a specific threshold, it will automatically be referred to the IRS via what is known as the Federal Income Tax Refund Offset Program. This is triggered when the amount owed exceeds $500 in most cases, though the threshold can be as low as $150 for individuals who receive federal benefits.
When this threshold is crossed, you’ll received a Pre-Offset Notice letting you know that your refund will be used to offset your child support debt. You’ll get a follow up Offset Notice once the money is actually taken from your refund. This could potential wreak havoc on your or your family’s finances, and keep in mind that this is just one potential consequence that comes with missing child support payments.
The best thing to do from the get-go is to avoid falling behind on payments, even if you believe that your current payment amount is too low. For those cases, it’s important to seek a modification of support payments first before allowing yourself to fall behind on your child support obligations.
Consult with an Experienced CA Family Law Attorney for More Info
The consequences for missing child support payments can be dire and far-reaching. If you’re worried about potential missed payments, need help modifying your child support order, or have any questions or concerns relating to family law in CA, know that we are here to help.
Call us at the White Oak Law at your earliest convenience to learn more about what we can do. You can reach us at 925-271-0999 to touch base with our team of legal experts in CA.