DOR Taxation web site

Refund Intercepts

The Department will intercept your income tax refund and apply it to any debt owed to a government agency that participates in the refund intercept/levy program. Intercepts may occur for unpaid debt for the following: 
 

  • Back taxes owed to Colorado and/or the IRS
  • Child or spousal support 
  • Aid to Families with Disabled Children (AFDC) 
  • Overpayment of unemployment benefits 
  • Delinquent student loan payments 
  • Judicial fines, fees, surcharges, judicial restitution or parking tickets 
  • Any other unpaid debt to the state
     

When a refund is intercepted, a letter is mailed to you that will provide details about to whom the debt is owed and how much of your refund was intercepted. The Department of Revenue does not have specific information about why or how much you owe the agency. Therefore, the letter supplies you with the agency contact telephone number, which should be used to dispute or research the debt. If the debt is smaller than the total amount of the refund, the difference will be issued to you.

Jointly filed returns

If you filed your income tax return with your spouse, but only one of you incurred the debt (example: one has unpaid student loans and the other does not), the spouse without the debt can still receive their portion of the joint refund. See Injured Spouse Claim for details.