When They Keep Your State Tax Refund

Authored By
Education for Justice
View or print documents

The Minnesota Department of Revenue can keep your Minnesota income or property tax refund, or lottery prize if you owe money to a state or county agency. The tax department sends your refund to the agency that you owe. This is called “revenue recapture.” It is used to collect overpayments of public assistance, medical bills from county or city hospitals, school loans, child support, debts to public housing authorities, and fines or restitution in criminal cases.