What is Tax Intercept?

If an obligor files a return and receives a tax intercept, both state and federal tax refunds can be intercepted if there are arrears over 30 days old on a case. For the federal tax intercept the arrears must be at least $500. If there are public assistance arrears (arrears owed to the state), they will be paid first with a federal tax intercept. For the state tax intercept the arrears must be greater than the monthly obligation. Non public assistance arrears (arrears owed to the custodial parent) will be paid first with a state tax intercept.

What if the obligor lives outside the State of Minnesota?
The obligor must file for a state tax return in the state of Minnesota in order for the intercept to occur. If the obligor lives in another state, and that state is enforcing the court order, that state will be responsible for the state tax intercept.

What if the obligor files a joint tax return?
In the case of a joint state tax intercept, the obligor and his/her spouse can file an injured spouse claim for a portion of the refund. The child support worker would require the following items:

Joint tax returns will be held by the state office to allow time for injured spouses to file a claim with the Internal Revenue Service.