Record More Than $1 Billion Collected by IRS in Delinquent Child Support

HHS News Release

The Clinton Administration reported today that a record amount of more than $1 billion in delinquent child support was collected by the federal government from federal income tax refunds for tax year 1995. This amount was 23 percent higher than the previous year and up 51 percent since 1992. Over 1.2 million families benefited from these collections.

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"The Clinton Administration is improving the future of millions of children with record child support collections and paternity establishments," said HHS Secretary Donna E. Shalala. "Since the Administration has taken office, child support collections have increased by almost 50 percent. The child support enforcement measures we insisted upon as part of welfare reform will build on this success. We are now sending the strongest possible message that parental responsibility must be a way of life, not an option."

Under the tax offset program, state child support enforcement agencies report names of parents who owe child support payments and the overdue amount to the HHS Administration for Children and Families. These persons are notified in writing of the amount which will be withheld to cover their child support debt and that amount is then deducted from their income tax refund. The delinquency may also be reported to credit reporting agencies.

"Under the new welfare law, delinquent parents will no longer be able to leave their children for the taxpayers to support," said David G. Ross, deputy director, Office of Child Support Enforcement. "The Clinton Administration, working with our state and local partners, is putting these critical new child support enforcement measures into place. For the millions of children still in need, we have a new message of hope."

Parents whose children receive Aid to Families with Dependent Children and whose unpaid child support totals $150 or more may have their federal income tax refunds withheld. For tax year 1995, refunds were withheld on behalf of over 850,000 families with children receiving AFDC. Parents of children who do not receive AFDC must owe at least $500 to have their refunds withheld. Over 350,000 non-AFDC families benefited from the program this year.

For tax year 1995, the total amount collected was $1,000,831,413, up from $661,711,371 in tax year 1992. The average collection was $847 for non-AFDC families and $827 for AFDC cases. The cost of processing these cases was $5.71 per case. Collections for tax year 1995 were made after tax returns for that year were filed in 1996 and refunds requested. Collections for 1996 will begin as income tax returns are filed in 1997.

The Clinton Administrationþs partnership with states has resulted in unprecedented financial support for children. From 1992 to 1996, child support collections have grown by nearly 50 percent and paternity establishments have increased by 55 percent. In 1996, the federal-state child support enforcement system collected a record $11.8 billion from non-custodial parents, up from $8 billion in FY 1992.

Preliminary data show that an estimated 800,000 paternities were established in FY 1996, up from 515,857 in FY 1992. Under the child support enforcement measures proposed by the Administration and included in the new welfare law, child support collections could increase by $24 billion over the next 10 years.

Attached is a chart showing state-by-state child support collected thru tax refunds in tax year 1995.

EDITORS NOTE: Charts are also available showing state-by-state total child support collections and child support collected thru tax refunds for tax years 1991 thru 1995 (FY 1992 thru FY 1996). Also available is a map showing percentage increase in child support collections for each state. Call (202) 401-9215.

STATE CHILD SUPPORT COLLECTIONS FROM 1995 INCOME TAX REFUNDS

Alaska $2,737,176

Alabama $25,222,875

Arkansas $10,946,665

Arizona $8,344,584

California $124,298,897

Colorado $13,263,149

Connecticut $13,079,646

District of Columbia $2,465,410

Delaware $3,150,245

Florida $47,924,516

Georgia $35,148,379

Hawaii $4,271,033

Iowa $14,717,551

Idaho $3,865,479

Illinois $32,173,827

Indiana $26,183,387

Kansas $12,035,140

Kentucky $16,315,340

Louisiana $18,437,799

Massachusetts $11,504,875

Maryland $21,792,649

Maine $6,972,109

Michigan $55,225,399

Minnesota $12,577,226

Missouri $23,743,980

Mississippi $19,621,742

Montana $2,190,359

Nebraska $4,592,381

Nevada $4,126,140

New Hampshire $3,465,802

New Mexico $4,836,653

New Jersey $25,153,605

New York $41,829,761

North Carolina $27,795,751

North Dakota $2,421,488

Ohio $56,992,860

Oklahoma $10,729,313

Oregon $9,903,562

Pennsylvania $43,719,172

Puerto Rico $3,074,935

Rhode Island $2,186,783

South Carolina $8,547,096

South Dakota $2,962,434

Tennessee $20,110,025

Texas $68,925,688

Utah $5,907,299

Virginia $18,656,760

Vermont $1,855,524

Washington $22,811,436

Wisconsin $31,162,409

West Virginia $7,419,339

Wyoming $3,285,463

United States $1,000,831,413

Note: All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news.

Contact: Michael Kharfen (202) 401-9215