Video: Can a Collection Agency Claim My Tax Refund from the IRS?
Can debt collectors take your tax refund? If you have unpaid debt, the last thing you want is to have your wages garnished or lose out on your tax savings. The good news is that only state and federal government agencies can garnish your tax refund. If you're unsure whether debt collectors might take your tax refund, watch this video to learn more about who can and can't take part of your refund.
The One Big Beautiful Bill that passed includes permanently extending tax cuts from the Tax Cuts and Jobs Act, including increasing the cap on the amount of state and local or sales tax and property tax (SALT) that you can deduct, makes cuts to energy credits passed under the Inflation Reduction Act, makes changes to taxes on tips and overtime for certain workers, reforms Medicaid, increases the Debt ceiling, and reforms Pell Grants and student loans. Updates to this article are in process. Check our One Big Beautiful Bill article for more information.
Video transcript:
Worried that a collection agency might take your tax refund? In this edition of Tax Tips by TurboTax, we'll explain who can and can't seize your refund.With TurboTax Live Full Service, a local expert matched to your unique situation will do your taxes for you start to finish. Or get unlimited help and advice from tax experts while you do your taxes with TurboTax Live Assisted.
And if you want to file your own taxes, TurboTax will guide you step by step so you can feel confident they'll be done right. No matter which way you file, we guarantee 100% accuracy and your maximum refund.
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