Tax Offset Option

Filed Under: Child Support, Tax Offset Option

Tax Offset Option

Last Updated: July 2023  The “tax offset option,” authorized through the Deficit Reduction Act of 2005, is when states elect to give families who are owed child support any support that the IRS deducts from a non-custodial parent’s tax refund for past-due child support. Only five states — Alaska, California, Pennsylvania, Vermont, and West Virginia Tax Offset Option