Child Support – State Tax Refund Offset

The State Tax Refund Offset program, also known as Revenue Recapture (RR), is a way the child support agency collects child support arrears.

  • The child support agency files a claim against any Minnesotan:
  • • state income tax refund
  • • lottery winnings over $600
  • • political contribution refund
  • • property tax refund, or
  • • renter's credit refund.
  • Criteria

    The child support agency can take the noncustodial parent’s state tax refunds and lottery winnings if any of the following are true:

  • • tte amount of arrears is more than one month of total court-ordered child support or maintenance payments, or both
  • • for arrears-only cases, the amount of arrears is at least $25
  • • arrears have been docketed as a judgment.
  • Exclusions

    The child support agency will not take state tax refunds or lottery winnings if any of the following are true:

  • • the case does not meet the criteria.
  • • a court order prohibits the use of state tax refund offset.
  • • the noncustodial parent filed bankruptcy before October 17, 2005 and remains protected.
  • • the custodial parent has claimed or been granted Good Cause.
  • Notification process

    The child support agency sends a Revenue Recapture Notice to the noncustodial parent. This notice informs the noncustodial parent that the child support agency has or will file a claim with the Minnesota Department of Revenue for the amount of the child support arrears. The notice explains the noncustodial parent’s right to review. It also explains what will happen if the noncustodial parent does not take action.

    State Tax Offset Fee

    Minnesota law requires the Department of Revenue to charge the noncustodial parent a $15 fee when it offsets a state tax refund to pay child support arrears. The Department of Revenue automatically deducts the fee from the amount collected before it sends the payment to the child support agency.

    The Department of Revenue sends a notice to the noncustodial parent when it sends the funds to the child support agency.

    Holding funds

    When the child support agency receives the offset funds, it applies the money to your cases that qualify for a state tax refund offset. The funds may be held before releasing to pay the custodial parent.

  • • Single returns
  • The state child support agency does not hold funds received from the offset of a single state tax refund.

  • • Joint returns
  • The state child support agency hold funds received from the offset of a joint Minnesota state tax refund for six months or until one of the following occur:
  • • the non-obligated spouse files an Injured Spouse Claim with the child support agency
  • • the non-obligated spouse signs the Injured Spouse Waiver of Claim to State Tax Intercept releasing their claim to their portion of the state tax refund offset
  • If, after six months have passed, the non-obligated spouse did not file either an Injured Spouse Claim or an Injured Spouse Waiver of Claim to State Tax Intercept, the child support agency will release the funds.

    Filing an Injured Spouse Claim

    If you filed a joint tax return with a spouse, the non-obligated spouse can file an Injured Spouse Claim. An Injured Spouse Claim prorates refunds from joint tax returns so the non-obligated spouse’s portion of the tax refund is not used to pay your child support obligation.

    The non-obligated spouse must file an Injured Spouse Claim with the noncustodial parent’s child support officer.

    Waiving an Injured Spouse Claim

    The non-obligated spouse may choose to waive their claim to their portion of the tax refund by completing the Injured Spouse Waiver of Claim to State Tax Intercept. They can obtain the form by contacting the noncustodial parent’s child support officer.

    Upon receipt of the signed form, the child support agency will release the funds.

    Authority

    Minnesota Statutes can be found on the Minnesota Office of Revisor of Statutes Web site.

  • • 45 Code of Federal Regulations, section 303.102
  • • 11 United States Code, section 362(b)
  • • 42 United States Code, section 666(a)(3)(A)
  • • Minnesota Statutes, Chapter 270A
  • • Minnesota Statutes, Chapter 290A
  • • Minnesota Statutes, section 349A.08, subdivision 8
  • • Minnesota Statutes, section 518A.61

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