State laws govern recoupment of child support overpayment, so a parent's options vary depending on the circumstances of the overpayment and local laws, explains Dads Divorce. A parent should contact a lawyer in his state to discuss recovery options. Most state agencies have procedures in place for recovering the funds lost, but there are deadlines for redress, so parents should notify the state of the overpayment as soon as possible.Continue Reading
In many states, if the child support agency is aware of the overpayment, the agency has an obligation to recover the funds, notes Dads Divorce. However, if the overpayment occurred due to reasons unknown to the agency, the person who overpaid is responsible for obtaining reimbursement. In some cases, the parent may have to go to court to seek repayment from the party who received the excess funds.
In Illinois, parents who overpay child support because of a withholding order may be eligible for reimbursement of the excess funds, reports Avvo. Parents may also receive reimbursement for payments made for maintenance, including those made voluntarily. However, if the payments were voluntary and for child support, the parent cannot recoup that money.
According to federal guidelines, states that seek repayment of child support funds by withholding future payments must obtain permission of the person who receives child support, according to the Office of Child Support for Families. If the parent does not respond to several letters seeking permission, the state may assume consent and choose to withhold a reasonable portion of future child support payments to repay the debt.Learn more about Child Support & Custody