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Earned Income Credit vs garnished wages

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    Earned Income Credit vs garnished wages

    Have a client who is paying back child support via a federal garnishment. Has a new child with non married partner and child lives with them. Will any EIC be garnished that he claims for this new child? He realizes he won't receive any refund of this withholding.
    Thanks for any thoughts.

    #2
    Originally posted by Got2csun View Post
    Have a client who is paying back child support via a federal garnishment. Has a new child with non married partner and child lives with them. Will any EIC be garnished that he claims for this new child? He realizes he won't receive any refund of this withholding.
    Thanks for any thoughts.
    Good question>>> but I believe he gets nothing back.... I hope I'm wrong............
    This post is for discussion purposes only and should be verified with other sources before actual use.

    Many times I post additional info on the post, Click on "message board" for updated content.

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      #3
      My grandson, who never listens to my tax advice, had a refund on his self-prepared tax return, all of which was due to EIC. His refund was retained by the IRS for defaulted student loans. I don't know for certain, but I think they can do the same for child supoort.

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        #4
        Wrong or right?

        Bob: Some people would hope you're right. (ie He gets nothing back, because the money will be going to the first child he won't support)
        "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

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          #5
          He will receive no refund per the terms stipulated in the garnishment.

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            #6
            garnishment?

            Originally posted by jimmcg View Post
            He will receive no refund per the terms stipulated in the garnishment.
            I thought that terms applied only to wages. Does IRS use the term to denote
            offsets?
            ChEAr$,
            Harlan Lunsford, EA n LA

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              #7
              garnishment

              In general, if a TP has an overpayment on a return, regardless of what caused the overpayment (withholding, refundable credits), and the TP has a liability for any Federal or State debt (limited to those states with which the Service has an agreement), that overpayment will be offset to that debt up to the amount of that debt.

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                #8
                Originally posted by ChEAr$ View Post
                I thought that terms applied only to wages. Does IRS use the term to denote
                offsets?
                The official IRS term is "Levy".

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