federal tax refund intercept

A federal tax refund intercept occurs when the government takes all or part of your upcoming tax refund to cover unpaid debts or obligations. This can include overdue federal or state taxes, student loans, child support, or other government debts. Rather than issuing the refund directly to you, the government temporarily redirects these funds to settle your outstanding balances. Once the debts are cleared, any remaining refund is returned to you. This process helps governments recover funds efficiently without requiring additional collection efforts.