Season 2 - Episode 12 - STOP or DEFEAT Child Support From Taking Your IRS Refund Explained.

STOP or DEFEAT Child Support From Taking Your IRS Refund Explained.
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Introduction:
Chris H  0:01  

Welcome. In this episode we're gonna talk about when the Child Support Agency takes away your tax refund. And that's process called a tax refund offset. And we're going to show you some strategies in which to either reduce or defeat that process. It all starts here what is called a W four form. And this is the new 2020 w four form, where there are five sections to this document. 

Next, we will talk about the actual statute that affects the refund process such as 31 CFR 285. Point three. If you were single, and you just had one job, then you would complete the W four form, which is section one and section five. 

However, if you're single and paying child support, then we suggest that you check out section two, three, and four. We'll also discuss what's called the innocent spouse relief. That is where if you have another family or you've been remarried, and you still have your child support involved, there are some protection under the law. Hello, my name is Chris. 

And in this session, we're going to look at what is called a tax offset program or where the child support intercepts your tax refund, and how you can either eliminate or avoid this process. As always, we ask for your support and we appreciate your support. We're saying donate if you can continue to support us by either following us on social media or like us and click the subscription bell. We have a section called call to action where we give you the steps and strategies were discussing in this process for the tax offset program. So the goal of this production is this. 

They were born in the enforcement of child support day, take your tax refund. And so in this episode, we're going to look at how you can affect or reduce the amount that they take from you within your tax return. The offset of tax return payments falls under c 31 CFR 285 point three. And in this part of the statute, it says that the debt as used in this section is synonymous with pass to child support. 

This is important in this statute, what they've done was they've redefined the word debt to only mean passed to child support. Second, they said that the past us Child Support is determined by the courts to be an administrative process under state law. Again, this is an administrative process under state law. Next, if you are going to be subject to this offset, then you must be notified in a written notification. 

And that is 42 USC 664 point eight three. Now notice on the administrative offset, it's the meaning as the word that you owe a debt to either the United States or the state or your home state itself. Well, let's talk about that for a second. I thought this was about child support. When did you went into an agreement where you owe the state. 

We'll talk more about that later. So further in the statute of 31 CFR 285. Point three, it sec says that this section is a delinquent debt owed to the state and that the states participate in this administrative offset through what is called a reciprocal agreement with the Secretary of the Treasury. And such reciprocal agreement may contain any requirements that the Secretary considers appropriate to facilitate the offset. Okay, so they're in an agreement or contract, and the requirements for that contract could be anything that the Secretary accept. 

Next, it says that offset under this is a voluntary for both the fiscal services and the state. voluntary. That means they do not have to participate with taking your tax return. By the way, the fiscal Services Division Bureau is a an agency of the Department of Treasury that is a separate municipal quote unquote Corporation of the Department of Treasury. So let's look at this strategy which is called you know, your W four form. Your employer may not have copies of it, you may have to

Chris H  4:56  
go to the IRS website and download it and here we have on the screen Which is called the W four employees withholding certificate. This is the form that you complete in order to do adjust your tax return. So here is a W four form and your W two form just for understanding. So any changes you make to the W four form, it affects the W two form. That is, if you'd like more money taken out of your your paycheck set, you get a higher tax return, or vice versa, the less money that you put into your W four it affects that you get a smaller return. And so this is what we're discussing in this strategy is we're going to affect the numbers that are on your W two form. As always, please consult your tax preparer or CPA. For more details. 

This is an illustration an exercise that we are showing you here today. So let's look at the W four form. As we said, the new w four form, you would only fill out section one and section five. If you're single, and you're not paying child support. If you're paying child support, then you have to look at the other boxes and this is section two here is where you make adjustments that will affect whether you get a higher return tax return or a lower tax return. And this involves a second job. 

Or if you have a new family or a new spouse, this affects your joint return. So again, this is another one of the areas which is called box area number two. Next inbox area number four, which is called the deduction worksheet, and here is where you have your standard deductions, all deductions you have whether you're single, now, as you know, which is unfortunate, when you are uncharged support, you no longer have the benefit of having a dependent, you're basically single. 

But here's in the section four is where you can make adjustments again, consult with your tax advisor. But this is an area in which you can point out to make the changes to lower your tax refund. So here's another chart if you wanted to do this on your own. In the back of the W four there's a chart layout of based on your income. 

So from across the left side is the amount you make annually. And across the top is where it says wages, salaries and deductions and what your tax responsibilities are. Again, if you don't understand this chart, please consult the CPA tax advisor. Now, all of this or that will affect your W four will also affect what is called the administrative war, wage garnishments that's 45 CFR point 32. In here, again, reminder that the wage garnishment garnishment process is a creditor agency relationship. So similar to the offset program, right, this is just what is called a credit relationship. And we have other videos on administrative offset, we would love for you to check out. 

So now it brings us to what is called innocent spouse relief. If you have a second family from child support, the IRS has a provision where you can protect that family from your child support. And the form is called 8857. And it's labeled request for innocent spouse relief. And that is this is available where you can separate if you file a joint return with your new family, that the return from your spouse, new spouse is not affected by the child support. 

Now, here's another tip that we bring to you that if you are on child support, you have the ability in which you can claim your child. The process is called bliss because Iris gives you a tax break. This is a video we'd like you to check out but you can claim your child in a specific year, whether or not you're the custodial parent, it's called the non custodial process.

Chris H  9:34  
In addition, in year 2020, a new what is called stimulus process has been rolled out. But the good news is that there's call what's called a tax return process where you can claim your stimulus check if you did not receive it on your 2020 tax return. So while you're making changes to your W four, you also want to take a look at the How did the cares act Or the Recovery Act affects your return. 

So here we are at a section was called call to action. So here's our tip and our summary. If you want to understand how the why they're taking your refund, it falls under 31 CFR 285 point three and 285 point six, where if you want to affect how much return you get so that they do not take or confiscate your tax return, you download the W four form your 2020. From the IRS website, you complete that either, you know, follow the process or you consult the tax advisor and determine how you can lower your tax return so that you spend the money within the year that you actually earned it, as opposed to have it taken away from you. You know, next tax refund season. 

So this brings us close to the end of our presentation. As we said if you disagree with any of our recommendations or suggestions, please send us an email. We also ask that you subscribe to our channel and hit the notification bell. And as always, we're bringing you in a consistent specific research and we're asking for a gift of $25 or any donation I was like and also please review some of our videos that we have on various topics. Thanks Have a good day.