If your tax refund seems smaller than you thought, this could be why.
Some filers may lose the entire refund to past-due debt. Others, though, may receive a portion of the refund that remains after the offset payments are taken out.
Generally, for a non-governmental creditor, such as a credit card issuer, to garnish a state income tax refund in Michigan, a creditor must first win a judgment against the taxpayer. Then the creditor files a writ of garnishment, the Treasury issues a notice to the taxpayer and the taxpayer has a 14-day window to object to the writ of garnishment, according to H&R Block.You're not at risk if you've missed a student loan payment or two.
But if someone is self-employed, they're more likely to be affected by the offset of income tax refunds, Kantrowitz said.The entire tax refund, of course, could be garnished depending on how much you owe. "The workaround for consumers is to fine-tune their withholding so that they aren't left with a big income tax refund," Kantrowitz said.If you're married and filing jointly, it is possible to get back your share of a tax refund if the refund has been reduced to apply to a debt owed by your spouse, not you.
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