The federal offset program varies by state and polices of the state. I posted the link to the Department of Health and Human services that administers the program. The link explains the policies of DHHS.
Phillip M. Smith Jr.
PHONE: 855 IRSTAXBIZ
THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can only be provided after consultation by an attorney licensed in your jurisdiction. The answer to question does not create an attorney-client relationship or otherwise require further consultation. Mr. Smith is licensed to practice law throughout the state of California with offices in Los Angeles County. He is authorized to handle IRS matters throughout the United States, and is also licensed to practice before the United States Tax Court. His phone number is 323-292-4116 or his email address is email@example.com.
I agree with attorney Smith. He provides an excellent link for you to further investigate the rules of your particular state.
Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.
This is correct because it is the state taking your money. However, the IRS has no limit except the total amount you are in arrears.