topic State taxes garnished by credit card debt collector!? Is this allowed?? in Get your taxes done using TurboTax

State taxes garnished by credit card debt collector!? Is this allowed??

cheldowd — Mon, 09 Mar 2026 04:48:07 GMT

Re: State taxes garnished by credit card debt collector!? Is this allowed??

LenaH — Sun, 27 Feb 2022 13:38:34 GMT

It depends. Private creditors may have access to your refund depending on your state. What state do you reside in? Typically, credit card debt collectors cannot garnish tax refunds to collect a debt. However, they can put a lien on your bank account to seize funds after your refund has been deposited.

For more information, please see Who Can Garnish an Income Tax Refund?

Re: State taxes garnished by credit card debt collector!? Is this allowed??

cheldowd — Sun, 27 Feb 2022 17:29:49 GMT

I reside in Michigan. This was definitely credit debt so I’m not sure I’ve personally never heard of this happening :( it never hit my account it was a garnishment.

Re: State taxes garnished by credit card debt collector!? Is this allowed??

LenaH — Sun, 27 Feb 2022 17:44:47 GMT

The Michigan Department of Treasury, Third Party Withholding Unit, processes garnishments under the authority of Public Act 211 of 1985.

Per the State of Michigan, prior to the state holding your income tax refund or credit, you should have received notification from the creditor who brought the case before the court. This notification is in the form of the defendant's copy of the "Request and Writ for Garnishment (Income Tax Refund/Credit)". Please see Example of Form.

For more information, please see What Happens to My Refund or Credit if it is garnished?

@cheldowd