Nearly 800,000 Parents' California Tax Rebate Fair Game For Garnishing

By Madison Hirneisen | The Center Square, The Center Square California

October 2, 2022

(The Center Square) – Next month, millions of Californians will receive a tax refund touted by lawmakers as “inflation relief.” But thousands of California parents who are behind on their child support payments could see that money garnished from their bank accounts as quickly as it was deposited.

The Middle-Class Tax Refund will provide taxpayers with a payment of up to $1,050 depending on income and dependents. Californians must have filed a 2020 tax return, met the income limits, been a resident for six months in 2020 and be a current state resident on the date the payment is released to qualify.

"Around 18 million refund payments benefiting an estimated 23 million taxpayers in total will go out starting Oct. 7, coming in the form of direct deposit or a mailed debit card," according to the Franchise Tax Board. Taxpayers who filed their returns electronically in 2020 and received a refund by direct deposit will have the payments deposited in their bank accounts. The remaining taxpayers will receive debit cards in the mail, which will begin mailing on Oct. 25.

For parents behind on child support payments, the refund may not sit in their bank account long. The Franchise Tax Board will not intercept the rebate payments, but the funds could be garnished through a bank levy after the rebate hits a taxpayer’s account.

“Individuals who are behind on their payments could have their bank account levied for the funds,” Nicole Darracq, assistant director of the Office of Communication and Public Affairs for California Child Support Services, told The Center Square in an email.

If a parent is behind on child support payments, officials can take several enforcement actions, including intercepting tax refunds and lottery winnings, according to California Child Support Services. In the case of the Middle-Class Tax Refund, interception of the funds is prohibited, meaning the Franchise Tax Board has to issue the refunds to parents behind on their child support payments. However, "after those payments are received, a garnishment order can be authorized to collect the funds," according to Darracq.

According to Child Support Services’ last Federal Performance Report in 2021, "there were 797,487 cases in California with arrears due." Darracq noted that this does not indicate how much is due or how long it has been due, “but that is the number of paying parents who have child support overdue in California.”

It’s unclear how garnishment will work if taxpayers receive a debit card instead of a direct deposit. The Franchise Tax Board did not have an immediate answer regarding this situation as of Thursday afternoon.

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