Child Support Services Tax Offset
Federal Tax Offset Process
An obligor will be submitted to the IRS for federal tax offset when the balance on a IV-D case reaches $500.00 owed to the custodial parent/caretaker and/or $150.00 owed to the State of Ohio (multiple cases will be combined to reach the threshold). The obligor will receive an offset notice from the IRS once the case meets the above criteria.
Cases are added, deleted and modified on a weekly basis and once the arrears reach $2,500.00 the obligor will be denied a passport.
If the balance falls below the threshold, the obligor will be automatically deleted.
Joint returns will be placed on hold for six months.
State offset Criteria
The non custodial parent cannot have filed for bankruptcy before 10-17-05. If the non-custodial parent filed after 10-17-05, they are eligible pursuant to Congress’ passage of the Bankruptcy Abuse Prevention Consumer Protection Act of 2005.
A minimum of $150.00 (either to the family or the State of Ohio) must be owed to be eligible. If the non-custodial parent has more than one case, all arrears are combined and must meet the $150.00 submittal criteria.
The case must be eligible for at least 90 days after a notice is sent to the non-custodial parent advising him/her that the case meets the minimum criteria.
How will I know if my state tax refund is being intercepted?
Submission of eligible cases is usually made at the end of September to the Ohio Department of Taxation. If the case does not meet the criteria for submission in September, the case will not qualify for State Tax Offset that year.
A Notice of Ohio Income Tax Refund Offset for Overdue Support is sent to the non-custodial parent. This notice provides instructions on how to request a Tax Offset Review if you want to dispute the offset. If no deletion occurs 90 days after the initial submittal date, the tax refund is eligible for offset.
When will the custodial parent receive the payment?
It takes 30-45 days after collection is received to be processed. State Tax Refunds allocate to current support first, the to child support arrears.