Solved: If i owe money to the US department of education, will my tax return go directly to them or will I receive it?
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
amyrkingsbury
New Member

If i owe money to the US department of education, will my tax return go directly to them or will I receive it?

 
1 Best answer

Accepted Solutions
NewGuy
New Member

If i owe money to the US department of education, will my tax return go directly to them or will I receive it?

  1. If you owe federal or state income taxes your refund will be offset to pay those taxes. If you had other debt such as child support or student loan debt that was submitted for offset, FMS will take as much of your refund as is needed to pay off the debt, and send it to the agency authorized to collect the debt. Any portion of your refund remaining after an offset will be refunded to you.

The IRS publishes a tax tip concerning offsets https://www.irs.gov/uac/tax-refund-withholdings-and-offsets



View solution in original post

6 Replies
NewGuy
New Member

If i owe money to the US department of education, will my tax return go directly to them or will I receive it?

  1. If you owe federal or state income taxes your refund will be offset to pay those taxes. If you had other debt such as child support or student loan debt that was submitted for offset, FMS will take as much of your refund as is needed to pay off the debt, and send it to the agency authorized to collect the debt. Any portion of your refund remaining after an offset will be refunded to you.

The IRS publishes a tax tip concerning offsets https://www.irs.gov/uac/tax-refund-withholdings-and-offsets



View solution in original post

kandakingsbury
New Member

If i owe money to the US department of education, will my tax return go directly to them or will I receive it?

Meaning if I owe the Dept of Education $10,000 and I have a refund of $1,000, the $1,000 will go to the balance of the student loan debt leaving $9,000 and me with no refund???
NewGuy
New Member

If i owe money to the US department of education, will my tax return go directly to them or will I receive it?

If it has been submitted to the IRS for offset, yes.
kandakingsbury
New Member

If i owe money to the US department of education, will my tax return go directly to them or will I receive it?

It appears that it is just a collection agency that is attempting to collect a debt. There is no communication from the IRS
NewGuy
New Member

If i owe money to the US department of education, will my tax return go directly to them or will I receive it?

The IRS won't communicate with him until they inform him about the offset.
kandakingsbury
New Member

If i owe money to the US department of education, will my tax return go directly to them or will I receive it?

OK...thank you for your time and information
Dynamic AdsDynamic Ads
v
Privacy Settings