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

[NewGuy · Accepted solution]

  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

[kandakingsbury]

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]

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

[kandakingsbury]

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

[NewGuy]

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

[kandakingsbury]

OK...thank you for your time and information