Understanding How the Treasury Offset Program Takes Your Refund for Past-Due Debts

If you expected a large tax refund but received much less—or nothing at all—your IRS Account Transcript may reveal two critical codes: TC 826 and TC 836. These codes confirm that your refund was taken to pay a debt through the Treasury Offset Program (TOP), the federal government’s system for collecting overdue financial obligations.

The IRS does not make the decision to reduce your refund.
Instead, TOP identifies your Social Security Number as owing a government-authorized debt, and it automatically intercepts your refund before the IRS releases it.

This guide explains exactly what TC 826 and TC 836 mean, which debts can trigger an offset, and how to know who took your refund.

What Is the Treasury Offset Program?

The Treasury Offset Program (TOP) is run by the U.S. Department of the Treasury’s Bureau of the Fiscal Service. Its job is to collect overdue debts owed to:

• Federal agencies
• State governments
• Child support agencies
• Certain courts

TOP intercepts federal payments—especially tax refunds—and redirects them to the agency that is owed money.

Your refund may be reduced or taken entirely.

What Is TC 826 on Your IRS Transcript?

Transaction Code 826 – Refund Applied to Debt

TC 826 means:

• Your refund was reduced
• Money was taken to pay an outstanding debt
• The amount offset is listed next to the code
• The IRS sent your refund money to another agency

TC 826 always reflects a Treasury Offset Program action.

Common debts that trigger TC 826:

• Past-due child support
• Defaulted federal student loans
• State income tax debts
• Unemployment compensation overpayments
• VA, SBA, and other federal debts
• Federal non-tax debts such as SNAP/benefit overpayments

If TC 826 appears, the IRS has completed the offset—there is no stopping it once processed.

What Is TC 836 on Your Transcript?

Transaction Code 836 – Refund Applied to Non-IRS Debt (Offset)

TC 836 shows the original refund amount that was scheduled to be issued before the offset occurred.

TC 836 + TC 826 work together:

• TC 836 = the full refund you were supposed to receive
• TC 826 = the amount taken to pay your debt

These codes confirm the refund did not go to you because it was redirected.

Why Was Your Refund Taken?

TOP only intercepts refunds for specific legally authorized debts.
Private debts like credit cards or medical bills cannot take your tax refund.

The most common refund-taking debts:

1. Past-Due Child Support

This is the number one reason taxpayers lose their refunds.
Child support agencies notify TOP, and your full federal refund can be applied.

2. Defaulted Federal Student Loans

If you stopped paying your federal student loans, the Department of Education can request an offset.

3. State Income Tax Debts

If you owe taxes to your state, the state can seize your federal refund through TOP.

4. Unemployment Overpayments

States can take your refund to recover overpayments, including those marked as fraud.

5. Federal Non-Tax Debts

This includes:

• SBA loan defaults
• VA overpayments
• SNAP or benefit overpayments
• Housing subsidy repayment

Refunds may be intercepted until the debt is fully paid.

How WMR Shows an Offset

If TOP takes your refund, Where’s My Refund usually displays:

• “Your refund was applied to past-due obligations”
• “Your refund amount was changed”
• A reduced refund amount

But WMR does NOT tell you:

• Who took the money
• How much was applied
• What type of debt triggered the offset

Only your transcript shows that in detail via TC 826/836.

How to Confirm Your Debt and Offset Amount

If you see TC 826 or TC 836 on your transcript, you can confirm which agency took your refund by contacting TOP directly.

Treasury Offset Program Call Center

800-304-3107

This hotline provides:

• The agency that received your refund
• The debt balance
• Contact information for that agency

The IRS cannot tell you who took your refund.

Can You Get Your Refund Back If It Was Offset?

In most cases, no.
Once TOP intercepts your refund, the money is legally applied to your debt.

However, there are exceptions:

1. Injured Spouse Relief (Form 8379)

Use this if:

• You filed jointly
• The debt belongs to your spouse only
• You are entitled to part of the refund

The IRS can refund your portion after a review.

2. Incorrect Debt

If the offset was based on:

• Identity theft
• An old debt you already paid
• A misreported overpayment

You must contact the agency—not the IRS—to dispute it.

What If Only Part of Your Refund Was Taken?

TOP can take:

• A portion of your refund
• The entire refund
• Future refunds until the debt is gone

If you see both TC 836 (full refund) and TC 826 (offset amount), compare the numbers to understand how much you will actually receive.

How to Prevent Future Offsets

To avoid refund seizures in upcoming years:

• Set up a payment plan with the agency
• Pay down student loan or child support arrears
• Resolve unemployment overpayments
• Update your records if identity theft occurred
• Contact the agency to stop collection once debt is paid

TOP clears your SSN only when the agency notifies Treasury that the debt is resolved.

When your refund is reduced or taken entirely, TC 826 and TC 836 on your transcript confirm that the Treasury Offset Program intercepted your refund to pay a government-authorized debt.
This is one of the most common reasons taxpayers receive a smaller refund than expected.

If you see these codes:

• Your refund was taken
• The IRS did not make the decision
• You must contact the offsetting agency for details
• Injured Spouse Relief may help in joint-return situations

Understanding these codes helps you avoid confusion and plan for future tax seasons—especially if you know a debt may trigger an offset again.