Will They Take My Tax Refund to Pay a Doctor Bill?
Posted June 21, 2013
WRAL Reader Question
I had a doctor bill the was done in 2009 and now they are now taking my taxes to pay the bill. Can they do that at this time? But they went a long time and have not said anything about it until now.
By law can thay take my tax money at the end of the year?
Click here to get my free my weekday email newsletter with the latest tips and advice on how to beat debt and do better financially. Subscribe now.
I'm not sure how they would intercept your tax refund to pay a private doctor bill. There is clearly more to this story. Either this was a debt owed to the federal government, it is a scare tactic by a collection company or maybe it is part of a child support issue.
But if you think you will get a big tax refund that can be intercepted at some point in the future the easiest way to handle this is to adjust your withholdings so you put more money in your pocket each month when you need it most and then get little back in a tax refund.
Many people use their tax refunds like a savings account. They have too much taken out each month and then get a big refund check and look at it like "free money." That's not a smart thing to do. Essentially you give the IRS your money for free and miss out on saving that each month for emergencies and/or retirement.
I would suggest you talk to whoever is trying to collect these funds and come up with a mutually agreeable repayment plan you can consistently afford with your other monthly obligations. If that's not possible then maybe this debt is part of a larger amount you owe and in that case considering bankruptcy would be a logical thing to do.
WRAL Get Out of Debt Guy
If you have a credit or debt question you'd like to ask about, how to get out of debt, just click here and ask away.
If you'd like to stay posted on all the latest get out of debt news and scam alerts, subscribe to my free newsletter.
I'd love to meet you at the next local Raleigh meeting of the Get Out of Debt Guy Support Group. Everyone is welcome.