If your car gets repossessed and you choose not to pay for it can they take your tax return?

For most states, no your tax refund cannot be taken away and used as payment of your repossessed car if you decide not to pay for it; however, the lender can place a judgement and a resulting bank execution for the deficit balance in an effort to go after your actual bank account, rather than your tax refund. This would allow the lender to possibly go after more money and receive a full balance on the car being repossessed.

Related Tax Questions

Can a lender take your tax refund until the debt you owe is settled?
Being in debt creates a lot of problems. Everyday your debt gets a little higher due to interest owed. But in the world of taxes a lender...... Read More
If a tax return is amended can section 179 be reduced?
When your tax return is amended, it means you have realized some errors in your previous tax return, so you decide to file again for...... Read More
Will the IRS tax you if your car was repossessed?
When the IRS has a tax lien against you, they are legally able to seize any possession you have that has the lien issued upon...... Read More
How does filing your tax return as married affect your return?
When you are married, you are required to file a joint tax return that shows the annual income of both persons. Even if one of...... Read More
How long does it take to get your federal tax return back in the mail?
Unfortunately, it does take quite awhile for you to receive your federal tax returns back in the mail. Ideally, it roughly takes about...... Read More
Why did my car get repossessed?
Repossessions can be tricky. Typically a repossession means an agent that is hired by a bank, debt collecting agency, and/or...... Read More
Can your ex-wife and her new husband legally claim your children on their taxes if she does not have
When it comes to claiming a child or children on a tax return after a divorce, things can get a little tricky. There are many factors...... Read More
Can the IRS take your workmans comp payout to pay back taxes?
The IRS has many powers, including the power to seize your tax return for various reasons. One power the IRS does...... Read More
When is the last day you can send in federal income tax forms?
Although there is no official time for when you can actually start to file your tax return to the IRS, there is a strict deadline for when they need to be filed, and that day is...... Read More
Will the IRS or state take your tax refund due to delinquent student loans?
Yes the state can take back your refund under the circumstance of your student loans defaulting particularly because...... Read More
If your wages are garnished can they also take your tax refund?
When your wages are garnished that means you had acquired a debt from a lender (can be mortgage debt, credit card debt, etc.) and...... Read More
If you purchase a used car from an out-of-state, private party do you have to pay sales tax twice?
Sales tax upon the purchase of an item that is as big as a car can be a bit tricky, sometimes. In this particular case when you...... Read More

Comments