Can they take a tax return in NC?

[merime]

I have never filed a tax return as I have not worked in 16 years being a stay at home mom. I started working in April and creditors keep asking about my tax return. I do not believe it could be that much at making less than $7,000. I read that if I get a judgement, they can take my tax return. Any information is greatly appreciated.

[chicagoannie]

Creditors are asking about your tax return to see if you have a big chunk of money coming in, and to get you to commit it to paying them. Your tax refund is no business of theirs so don't give them any information about it.

[SunshineGal]

I agree with Annie.

[lblanchette]

I lived in NC, and it really depends on who the money is owed to. I had them take my tax refund for medical bills that were past due and utility bill. I couldn't believe it. They just shorted my refund the money that was due. I wouldn't tell them how much you are getting back. Maybe you will be able to fly under the radar. It just depends on who it's with and if they are set up to do the IRS lien.

[chicagoannie]

No one can grab your tax return without going through the courts first. So it is not like all of a sudden you will receive a tax refund for $1 when you were expecting $1200. You will KNOW in advance.

[lblanchette]

If I may interject, that's not true in NC with your state tax refund. I didn't know at all until I called Raleigh and asked them what happened to my return. I'm just telling you from experience. I didn't receive anything in the mail etc. According to the information I have, the hospitals and utility companies have the right to do that in NC.

[ValleYum]

Your spouse hasn't EVER listed you on a joint income tax return? Even if you had no income, you would have/could have been a dependent.

[merime]

Yes he has, but this year I will be filing on my own. I really am clueless as usual of what to expect. Before the CC asked me, I had not even really thought about a refund.

[flyinbroke]

THey cannot garnish your refund unless it is a government loan...defaults to the IRS and to student loans mean they can take it.

However, like wages that are not garnishable in NC, once they hit your bank they are now fair game and can be taken. Wages are only wages before the company pays you, tax returns are fair cash once they hit your bank account. Judgments mean they can levy your account.

ANy return is none of their business for now. Be careful with your bank account once they have a judgment.

[ValleYum]

Your marital status on 12/31 will determine how you file your tax return(s) for the year. I have to wonder if your husband is still planning on claiming you and.or your children as dependents - you will really need to ask him.

If you aren't yet divorced, you would either have to file as Married, Filing Separately or Head of Household. If you have the children living with you, it is possible you will be able to file with the Head of Household status and qualify for the Earned Income Tax Credit. If you qualify for this tax credit - it could possibly give you a nice, unexpected refund. You really should consult your divorce attorney on your legal filing options for this past tax year.

Since you have never filed taxes on your own, it will really be important for you to talk to a tax professional to get your taxes done. Your form(s) should be very simple and fairly inexpensive to prepare but again you need to find out what your husband is planning on/has already filed because the absolute last thing you want are problems with the IRS or the NC Department of Revenue.

I would also advise you to get a **paper check** that you can cash pretty much anywhere - not a direct deposit - in case of a judgement or problem with your bank account.

Simply put, it is time to put on the big-girl panties, Merime. You have got to get your act together for your children and your future. I truly wish you the best.

Please note: I am NOT a tax professional nor a lawyer. You should seek the advice of both for this really important task.