Beware Of Tax Refund Offset Program – TROP

Friday, January 27, 2012, PM | Leave Comment

If a taxpayer owes past-due child support of $150 or more, the Tax Refund Offset Program (TROP) can intercept both state and federal income tax refunds that are due the taxpayer.

The program collects past due child, spousal, and medical support from a payer’s state and federal income tax refund.

The program is a coordinated effort of the

  • U.S. Internal Revenue Service (IRS)

  • Federal Department of Treasury Financial Management Services (FMS)

  • Federal Office of Child Support Enforcement

  • Michigan Department of Treasury

  • Office of Child Support of the Michigan Family Independence Agency

  • Local friend of the court offices

  • If you have stopped paying child support

    If, for any reason, you have stopped paying child support, alimony, or medical support that you were required to pay, be warned that the Local Friend of the Court (FOC) office can intercept your income tax refund and apply it to overdue support case which meet federal and state requirements. In other words, they TRAP your TROP.

  • If you have stopped receiving child support

    All cases in which a family has received Temporary Assistance for Needy Families (TANF) payments are automatically eligible for the Tax Refund Offset Program. If you have never received TANF benefits, you should check with your local FOC office to see if you have previously signed an application that requested IV-D services which are child support services. Check your state office for IV-D services.

  • For more details…

    For a complete description, click on the PDF file of Tax Refund Offset Program (TROP).

In a Nutshell
If you have stopped paying child support, Federal and your State can intercept your tax refund. You get money left over when the money is paid in child support. In some cases, you might get nothing in tax refund (no leftover.)

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