What is the Federal Tax Refund Offset Program?
The Federal Tax Refund Offset Program (FTROP) collects payments of child support from the Internal Revenue Service (IRS) income tax refunds of noncustodial parents who owe past due child support. Before a case is submitted to FTROP, Federal Law mandates that: (1) for cases involving cash assistance, the support obligation must be overdue by at least $150 and delinquent for three months; and (2) for other cases, the support obligation must be overdue by at least $500 and the child has not turned 18 years of age.
The Federal Tax Refund Offset Program (FTROP) collects payments of child support from the Internal Revenue Service (IRS) income tax refunds of noncustodial parents who owe past due child support. Before a case is submitted to FTROP, Federal Law mandates that: (1) for cases involving cash assistance, the support obligation must be overdue by at least $150 and delinquent for three months; and (2) for other cases, the support obligation must be overdue by at least $500 and the child has not turned 18 years of age. 15. What portion of the noncustodial parent’s wages will be withheld? The Consumer Credit Protection Act determines the maximum amount of an individual’s net income that is subject to garnishment. These limits are 50 percent for a noncustodial parent who is the head of a second household and 60 percent for a noncustodial parent who is not supporting a second family. These percentages may be increased five percent for payment on arrears owed when the noncustodial parent is behind
The Federal Tax Refund Offset Program (FTROP) collects payments of child support from the Internal Revenue Service (IRS) income tax refunds of noncustodial parents who owe past due child support. Before a case is submitted to FTROP, Federal Law mandates that: (1) for cases involving cash assistance, the support obligation must have an overdue amount of $150 or more and (2) for other cases having an overdue amount of $500 or more. In both TANF and Non-TANF cases the overdue support will continue to be submitted through FTROP for collection until the arrears amount reaches a $0 balance, whether or not the child is a minor. The Deficit Reduction Act (DRA) of 2005 (Public Law 109-171 §7301) provides states the option to either continue to apply Federal Tax Refund Offset Program (FTROP) collections to arrears assigned to the Commonwealth or directly to families on cases that formerly received Temporary Assistance for Needy Families (TANF). Pennsylvania chose to redirect collections to famil
