Yes, sometimes. The IRS can apply your federal tax refund to any nondischargeable tax debt that survives your bankruptcy. Refunds for the tax year in which you file Chapter 7 may also be claimable by the bankruptcy trustee as estate property. The rules differ by chapter and by which tax year's refund is at issue.
The Treasury Offset Program. Under 31 U.S.C. § 3720A, the Treasury Offset Program automatically applies any federal tax refund to outstanding federal tax debt, defaulted federal student loans, child support arrears, and certain other government debts. This program operates independently of bankruptcy. If you have nondischargeable tax debt after bankruptcy, future refunds will continue to be offset until the debt is paid.
Which tax debt actually discharges. Federal income tax debt is dischargeable in Chapter 7 only if it meets all five tests under 11 U.S.C. § 523(a)(1): the return was due more than 3 years before filing, the return was actually filed more than 2 years before filing, the tax was assessed more than 240 days before filing, the return was not fraudulent, and the taxpayer did not willfully attempt to evade. Trust fund taxes (payroll withholdings) are never dischargeable. Recent tax (last 3 years) is rarely dischargeable.
Refunds for the year you file Chapter 7. A tax refund earned during the calendar year of filing belongs partly to the bankruptcy estate. The trustee can claim the portion of the refund attributable to income earned before the filing date. So if you file Chapter 7 on July 1, half the year's income was pre-petition and the trustee can claim half the refund (assuming no exemption protects it). Many states' wildcard exemptions protect refunds; some don't.
Earned Income Tax Credit and Child Tax Credit. The EITC and CTC portions of a refund are protected in many jurisdictions because they are means-tested public benefits. Specific protection varies by state exemption law. The wildcard exemption in many states can also be applied to refunds to keep them out of the trustee's hands.
Refunds for years after filing. Post-petition refunds are yours. The bankruptcy estate only includes pre-petition assets, and a future tax refund is generated by post-petition income. The trustee cannot reach refunds for tax years that begin after the filing date. The IRS, however, can still apply those refunds to surviving nondischargeable tax debt.
Chapter 13 and refunds. Many Chapter 13 plans require you to turn over future tax refunds (or a portion above a threshold like $1,500) to the trustee for distribution to creditors. Districts vary. Some require all refunds; some let you keep refunds below a threshold; some allow you to amend the plan to keep an unexpectedly large refund.
Practical strategy. If you expect a large refund and plan to file Chapter 7 in the second half of the calendar year, consult an attorney about timing. Filing in January after receiving the prior year's refund and spending it on exempt expenses (rent, utilities, food, necessary repairs) is a legitimate way to put the refund out of the trustee's reach. Filing in November while still expecting a $5,000 refund usually means losing most of it. This is one of the most common timing decisions in consumer bankruptcy.
Innocent Spouse Relief and joint refunds. If you file jointly with a spouse and the tax debt belongs to your spouse alone (or vice versa), the Injured Spouse Allocation under Form 8379 can protect your portion of a joint refund from offset. This is a separate IRS process that runs in parallel with bankruptcy.
The honest summary. Refunds can be claimed in bankruptcy if they fall within the estate or if they are being offset against nondischargeable tax. Timing your filing carefully and using available exemptions is the practical way to protect them. A consumer bankruptcy attorney can run the math before you commit to a filing date.