If a taxpayer owes a past debt to an agency of the State of Colorado, the income tax refund or PTC Rebate could be intercepted to satisfy the debt. When a refund is intercepted, the Department of Revenue sends a letter explaining which agency initiated the intercept, the amount of the refund intercepted and whom to contact for further information. If the debt is smaller than the refund, the taxpayer will receive the difference.
If a taxpayer believes the refund has been intercepted in error, the taxpayer must contact the agency initiating the interception in order to clear up the problem.
Instances in which a refund could be intercepted include:
- Debts for child or spousal support.
- Aid to Families with Disabled Children (AFDC).
- Debts due to overpayment of unemployment benefits.
- Unpaid student loans.
- Judicial fines, fees, surcharges, judicial resititution or parking tickets.
- Any other unpaid debt to the state
If you file a joint return and one spouse owes money to a state agency that is going to intercept your refund, the injured spouse (the one not in debt) may claim his/her portion of the refund.
The portion is determined by dividing the injured spouse's gross income by the joint gross income and multiplying the resulting percentage by the income tax refund. A written claim, along with a copy of your federal return and copies of all W-2s, must be filed to receive the refund. Do not send this claim with your return. Mail it in a separate envelope to the attention of the:
"Injured Spouse Desk."
1375 Sherman St.,
Denver, CO 80261