Yes, your Child Tax Credit can be subject to garnishment. To the extent permitted by state and local laws, your tax refund, including the portion related to the Child Tax Credit, may be subject to garnishment by state, local government, and private creditors. This includes garnishment in a court order involving a non-federal party, such as fines related to a crime, administrative court fees, restitution, and other court-ordered debts. This is also true for advance Child Tax Credit payments, which were not exempt from garnishment by non-federal creditors under federal law.
Sources:
§ 24. Child tax credit
Notice 2020-65
CCA 199948027
PMTA 01672
