Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted May 31, 2019 9:16:27 PM

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

0 6 1052
1 Best answer
New Member
May 31, 2019 9:16:29 PM

  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



6 Replies
New Member
May 31, 2019 9:16:29 PM

  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



New Member
May 31, 2019 9:16:31 PM

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???

New Member
May 31, 2019 9:16:31 PM

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

New Member
May 31, 2019 9:16:33 PM

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

New Member
May 31, 2019 9:16:33 PM

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

New Member
May 31, 2019 9:16:35 PM

OK...thank you for your time and information