Skip to Content Accessibility Information

Tax Refund Intercept Program (TRIP) - UI Benefit Payment Control (BPC) - Unemployment Insurance

An individual’s state income tax refund may be intercepted and used to repay debt owed to the State of Maryland if:

  • the debt is one-year-old or greater;
  • the debtor has made little to no effort to repay the debt;
  • the debt has not already been transferred to the state Central Collection Unit (CCU); and,
  • an issue impacting the debt is not under current appeal.

A state tax refund payment due to a claimant (a recipient of unemployment insurance benefits) who has an outstanding debt may be intercepted and applied to that debt (in accordance with the agreement described below). The CCU oversees this process and charges the debtor a 10% collection fee for this interception.

Example: If an individual is entitled to a $1000 state tax refund and has an outstanding debt of $500 to the State of Maryland/Maryland Department of Labor:

  • $550 will be intercepted from the $1000. Of the $550, $50 will go to CCU, and $500 will go to the Maryland Department of Labor to repay the debt owed.

TRIP Agreement in Maryland

Pursuant to an agreement, effective September 1, 1995, between the Secretaries of the Department of Budget and Management and the Maryland Department of Labor, in accordance with the provision of 3-302(b) of the State of Finance and Procurement Article, and the Code of Maryland Regulations 17.01.02, the Central Collection Unit (CCU) is authorized to certify to the Income Tax Division, Comptroller of the Treasury, the names of those who are indebted to the State of Maryland/Maryland Department of Labor or any of its agencies.

For more information about TRIP and repaying delinquent debt, see the CCU TRIP webpage.