Yes, your Child Tax Credit (CTC) can be offset if you or your spouse owe past-due child support. Refunds of an overpayment of a tax liability, including the portion to which your Child Tax Credit relates, may be reduced (offset) for overdue taxes from previous years or other federal or state debts that you owe. This includes past-due child support.
If you file a joint tax return and receive a refund, any refund of your overpayment may be subject to offset for tax debts or other federal or state debts your spouse owes. This is different from advance Child Tax Credit payments, which were not reduced (offset) for past-due child support.
To protect your share of a joint refund that would otherwise be applied to your spouse’s debt, you can file Form 8379, Injured Spouse Allocation. By filing Form 8379, the injured spouse may be able to get back his or her share of the joint refund. This form is filed by one spouse (the injured spouse) on a jointly filed tax return when the joint overpayment was (or is expected to be) applied (offset) to a past-due obligation of the other spouse.
Sources:
Publication 504 (2023)
Instructions for Form 8379 (11/2023)
IRM Part 21. Customer Account Services. Chapter 4. Refund Inquiries. Section 6. Refund Offset
§ 301.6402-5. Offset of past-due support against overpayment.
