Money from tax refunds on AFDC cases is turned over to the state of Michigan. The child support account is credited and AFDC costs are reimbursed. Any money left over is paid to the payee. No matter how much overdue support is owed, the most that can be collected through the TROP is the amount of the payer's income tax refunds. Only the reported overdue support is sent to the Friend of the Court for payment to the payee.
Any balance is paid to the payer by tax agency.
If the payer files a joint federal tax return, the Friend of the Court holds the refund 6 months before distributing it to the payee. This is required in case an income tax return adjustment is filed by the payer's current spouse. Yes, the payer is notified prior to any action. The payer may appeal the request by using instructions provided in the pre-offset notice. After the income tax refund is offset, an offset notice is sent to the payer by the tax agency.