Debt Management Services

Type of Payment Offset
(or levy)

Type of Debt Collected

Statutory Authority

Regulatory Authority

Amount Deducted

Federal tax refund

Federal non-tax debts

26 U.S.C. 6402(d)
31 U.S.C. 3720A

31 CFR 285.2
Creditor agency
regulations

100%

Child support debts

26 U.S.C. 6402(c)
42 U.S.C. 664

31 CFR 285.3
45 CFR 303.72
HHS procedures

State income tax debts

26 U.S.C. 6402(e)

31 CFR 285.8

State unemployment compensation debts

26 U.S.C. 6402(f)

31 CFR 285.8

Social Security
Black Lung
Railroad Retirement
(benefit payments)

Federal non-tax debts
(may not be offset to collect child support or other debts owed to States)

31 U.S.C. 3716

31 CFR 285.4

Lesser of 15%
or amount over
$750.00

Federal tax debts (levy)

26 U.S.C. 6331(h)

26 CFR 301.6331-1

15%

Federal salary

Federal non-tax debts

5 U.S.C. 5514
31 U.S.C. 3716

5 CFR 550.1101
31 CFR 285.7
Creditor agency
regulations

15%

Child support debts

31 U.S.C. 3716(h)

31 CFR 285.1
State law & regulations
HHS procedures

50%-65%

Federal tax debts (levy)

26 U.S.C. 6331(h)

26 CFR 301.6331-1

15%

Federal non-tax
non-salary
non-benefit
(includes civil service retirement, travel,
vendor, etc.)

Federal non-tax debts

31 U.S.C. 3716

Federal Claims
Collection Standards
(31 CFR Parts 900-904)
31 CFR 285.5
Creditor agency
regulations

100%, except as
otherwise provided
by law (25% for retirement)

Child support debts

31 U.S.C. 3716(h)

31 CFR 285.1
State law & regulations
HHS procedures
Exec. Order 13019

Federal tax debts (levy)

26 U.S.C. 6331(h)

26 CFR 301.6331-1

15%
100% for certain vendor payments

State debts (other than support)

31 U.S.C. 3716(h)

31 CFR 285.6

100%, except as
otherwise provided
by law

State payments
(tax refunds, vendor, etc.)

Federal non-tax debts

State statutes

State regulations
31 CFR 285.6

100%