Can hospital take your taxes

[2000cartezz]

when can the hospital take your taxes

[JessicaU]

Hello 2000cartezz,

How are you doing? I see your wanting to know if a hospital can take your tax refund.

I will gladly help you with this.

The bill for a hospital visit, however brief, may be enough to send you back to the emergency room, especially if you don’t have the money to pay for it. If you’re expecting a tax refund, you may fear that the hospital you owe money to will intercept your check from Uncle Sam to satisfy the outstanding balance. Understand your rights to avoid unpleasant surprises at tax time.

Garnishment vs. Interception

    While the hospital you owe money to can’t directly intercept a tax refund, that doesn’t mean it can’t get its hands on your refund. Like any other bill collector, it can get a judgment against you in court for the outstanding bill. Then, it can request that the court seize your bank accounts so that it can collect on the debt. Assuming that you’ve had your tax refund direct-deposited into your bank account or that you personally deposited your check from Uncle Sam into your account prior to the seizure order, the money from your tax return will be in your account and there for the taking.

I hope this informatin is very helpful.

Thank You for choosing TutboTax

Have A Great Day!!

Jessica

[tabbyj0414]

This answer is partially incorrect. The hospital bills can be paid for directly from the state tax. Most states have laws that allow the state treasury to take state tax refunds to give to hospitals for debt. I know because they take mine every year. It s the state agency that sends me a notice that says my tax has been seized in payment of a debt. The hospital never sends a receipt for the payment. It isn't a bank interception. It has nothing to do with the bank. So in response to the original question, yes- your tax can be taken to pay hospital bills. However, your federal tax is less likely to be at risk, unless a previous seizure order is in place for a federal debt (previous tax, loan default, etc.).

Your answer implies if a court judgement isn't already in place, the return is basically safe, when in reality, if you owe a debt, they can take your state tax, then they can get a judgement for the bank and take the rest.

[dqlv123]

This is true. My state refund is taken every year and I have received a notice of lien the state has gotten on my federal funds. Basically, I have found that there is no way to protect your refunds short of getting a paper check and depositing the cash into a jar in your yard. Lol

[dojeanette]

 My state of Virginia has been taking my state tax return every year. I don’t owe an outstanding debt to UVA hospital. Last time I was there, I had Medicaid for my disability. That was more than 10 years ago. Yet they still take my tax return without notification, without judgment, without lien, every year.

[SweetieJean]

You are posting on a 5 year old thread.

[dojeanette]

Thank you. It must still work

[Tinaow]

So they can take my tax return refund every year and there is nothing that can help especially if I was unemployed and had no income and needed that refund 2018 to live I lost everything. And I am in the low income bracket and them taking it doesn't seem right I had no choice to be transferred to the hospital. It's a government hospital. Is there a program or a less reduced payment pay. 

[xmasbaby0]

@Tinaow 

https://turbotax.intuit.com/tax-tips/tax-payments/who-can-garnish-an-income-tax-refund/L7cPPzDyc

[Kryhess123]

I never received a judgment, court order etc for my state refund that is taken every year from Chesapeake Regional Hospital. For the past 8 years i have  set up direct deposit for my federal and state refund for my bank account I never receive my state return I always get a letter in the mail itemizing the full amount that has been taken from this Hospital I feel in some sorts that this is against the law if I've never signed an agreement but that form of payment to be received they should not be able to touch my state return I have not seen it for 8 years they do not collect it from my bank account they automatically sees the money before it even hits the account

[Kryhess123]

***seize

[KarenM90]

It depends.  It depends on the state in which you live.  

Generally your refund can be garnished for federal and state tax debts and child support.     

Here is an article that gives a general overview of debts that can be collected.  However, please note at the top, that the article acknowledges that some states allow private creditors to also collect debts in this manner:  Who can garnish and income tax refund?

[priceg2019]

I know this is an old post but something seems wrong here...UVA is still doing this with my state taxes . They did it in 2019 and 2020 taxes. They got in trouble for ferti g credit on THEIR taxes for "write offs" and "charitable care " then they turned around and still collected the money? That was considered double dipping.  But bvb they are still getting away with it because I qualified and my Bill's were paid with charitable care. I had no balance then on my credit report is all these collections from Bull City their collection agency from the same day of service where they insisted I stay a week and have tons of test run on me. I had to Insist and sign myself out. My bill wound up being over $17,000.00 for sepsis in my kidney. They sent the accounts lady around to get my financial info and before I left I had my employer personally bring my required information to get my approval and I was approved. Then they ruined my credit and y putting the bills.on my credit report anyway.i dont understand. So watch out. I'm getting Legal Aid on it.

[Critter-3]

As long as there is a valid OFFSET  in place with the state then they are obligated to intercept the refund.  Use whatever means you can to get the offset removed by the company you owe.

[srk4]

I had a bill from 2008 that was taken from my 2016 tax return and I’m trying to get proof it was paid to show to their agents how do I get my hands on that