Can the veterans hospital take your federal tax refund?

If you agree to copays, and that balance exceeds 90 days, the VA notifies Treasury.

Treasury places that name in a database and uses it to claim the refund up to the amount of the balance to VA. You then get a letter notifying you and you can then contact VA if you dispute the balance. Treasury also includes in the database State taxes owed and not paid along with child support arrears and student loans.