Federal and State Tax Offset Program
Under the tax refund offset process, support arrears that do not include fees, court costs or any non-support debts are satisfied through the offsetting of Federal and State income tax refunds payable to obligors owing past-due support. In accordance with Ohio Administrative Code, Ohio Law, Federal law and regulations, all past-due support meeting the criteria shall be submitted for collection through the Federal Tax Intercept Program on a weekly basis and the State Tax Intercept Program on an annual basis.
Refund Anticipated Loans
Payors: DO NOT file for RAL (Refund Anticipated Loans) or any type of fast check. If you are submitted for the Tax Offset Program you will not receive the funds and will still be required to pay the fees related to the loan. If you are unsure if you are submitted please contact your CSE caseworker.
Tax Offset Criteria
The criteria for Federal Offset is $150.00 if there are assigned (owed to the state) arrears owed or $500.00 if the arrears are owed to the household. This amount is accumulative of the obligor’s cases. The criteria for State Offset is $150.00 in arrears whether it is assigned or owed to the household.
Spousal Support Cases
Spousal support cases are not eligible for the Federal Tax Offset Program however if there is a child support order attached to the case, even if the child support is set at zero, but there are spousal arrears the case in the amount of $500.00 or more then the case will qualify for offset.
If the obligor and/or current spouse have filed bankruptcy prior to 10/17/05, the case cannot be submitted for the Tax Offset Program until the bankruptcy has been discharged.
Allocation of Payment
According to Federal regulation, the order in which balances are paid from an intercepted federal income tax return is:
According to Ohio regulation, the order in which balances are paid from an intercepted state income tax return is:
Current spouses/parties filing a joint return should file an Injured Spouse Claim (form 8379) with the IRS (www.irs.gov) at the time of filing their tax return, if they do not wish to have their portion of the tax refund intercepted and applied to the non-custodial parent’s past due support balances. When an Injured Spouse Claim is filed with the IRS, the IRS determines the amount to be refunded to the current spouse/injured party. The IRS then refunds the monies directly to the injured spouse/party. All joint returns intercepted are held in accordance with Federal law for a period of six months prior to being applied to the non-custodial parent’s arrearage.
From the time an obligor files their taxes until the offset return actually post to the case is approx. 6-8 weeks. Unless the return is a joint return as referred above then the funds will release to the case in 6 months unless the balance owed is due to the State of Ohio.
Balance and Administrative Fee Agreement
Non-custodial parents who wish to have any excess amount collected through the offset program applied to any existing balances owed on current support orders, administrative fees or additional balances. Non-custodial can complete a Balance and Administrative Fee Agreement or contact the Clermont County Child Support Office.
Ohio State Offset Program Ohio Revised Codes 3123.821 & 3123.82 Ohio Administrative Code 5101:12-50-20.2 Federal Tax Offset Program Ohio Revised Code 3123.81 Administrative Code 5101:12-50-32.1
For further information, please contact Clermont County Child Support Tax Offset Coordinator, Viola Rice at 513-732-7434.