Tax Refund Offset

What does it mean to have your tax refund offset?

The law allows the use of part or all of your federal tax refund to pay other federal or state debts that you owe. Here are six facts from the IRS that you should know about tax refund ‘offsets.’ A tax refund offset generally means the U.S. Treasury has reduced your federal tax refund to pay for certain unpaid debts.

Certain financial debts from your past may affect your current federal tax refund. The law allows the use of part or all of your federal tax refund to pay other federal or state debts that you owe.

Here are six facts from the IRS that you should know about tax refund ‘offsets.’

  1. A tax refund offset generally means the U.S. Treasury has reduced your federal tax refund to pay for certain unpaid debts.
  2. The Treasury Department’s Financial Management Service is the agency that issues tax refunds and conducts the Treasury Offset Program.
  3. If you have unpaid debts, such as overdue child support, state income tax or student loans, Financial Management Service may apply part or all of your tax refund to pay that debt.
  4. You will receive a notice from the Financial Management Service if an offset occurs. The notice will include the original tax refund amount and your offset amount. It will also include the agency receiving the offset payment and that agency’s contact information.
  5. If you believe you do not owe the debt or you want to dispute the amount taken from your refund, you should contact the agency that received the offset amount, not the IRS or Financial Management Services.
  6. If you filed a joint tax return, you may be entitled to part or all of the refund offset. This rule applies if your spouse is solely responsible for the debt. To request your part of the refund, file Form 8379, Injured Spouse Allocation. Form 8379 is available on IRS.gov or by calling 1-800-829-3676.

Not all debts are subject to a tax refund offset. To determine if a debt is owed (other than federal tax), and whether an offset will occur, contact BFS’ Top call center at 800-304-3107

Do you have an Offset? Connect with others and share your updates and progress here!

0 0 votes
Article Rating
If You Found The Information Here Was Useful Please Consider Sharing This Page!
Advertisement
Refundtalk

Share
Published by
Refundtalk

Recent Posts

CFPB Takes Action Against Navient for Years of Student Loan Mismanagement and Violations

Order would put an end to Navient’s years of abuse of students and taxpayers in…

2 months ago

Maximizing Deductions for Home-Based Businesses: A Guide to Claiming Home Office Deductions and Other Expenses

Running a home-based business comes with many perks—flexibility, no daily commute, and the comfort of…

2 months ago

Understanding IRS Tax Refund Deposits

Tax season can be a time of anticipation and excitement, especially when you’re expecting a…

4 months ago

Today is Tax Day for 2024!

It's that time of year again – Tax Day 2024 is here! Today is the…

7 months ago

PATH ACT TAX REFUND HOLD 2024 ENDS TODAY

The Protecting Americans from Tax Hikes (PATH) Act was created in order to protect taxpayers…

9 months ago

IRS Will Update The Where’s My Refund? Tools by February 17

The IRS’s “Where’s My Refund?” tool will be updated by February 17, 2024, for many…

9 months ago
Related Posts

This website uses cookies.