My tax returns are offset, what can I do?

[SweetieJean]

about what?

[VolvoGirl]

Were you having the fees deducted from your refund?  If the IRS kept your refund you still need to pay the fees.

[smouzon6039]

What fees?

[VolvoGirl]

Any Turbo Tax fees.  

[smouzon6039]

I had to upgrade my account to put in my tax interest information from my student loans. Had the upgrade payment deducted from my total tax refund. First time i've ever had to but i'm just happy the offset has been suspended.

[stevenrickabaugh]

@VolvoGirl  yes but I knew that already. The issue was I owed the state so I had to forego my state returns

[smouzon6039]

After getting in the Rehabilitation program and making 5 payments - the offset was cleared. The IRS "Where is my refund" status was showing topic 203 BUT it showed i was due deposit for today May 1. I woke up to the funds in my account this morning on time. The payment i owed to Turbo Tax for the services was deducted and i was given the rest. Yes!!! Good luck to anyone who's still wondering.

[smouzon6039]

I had the same problem. The only option that was given to me was to get my loans out of default thru the collection agency (national recovery) who my loans were transferred to. I was told after the 5th qualifying payment in the rehabilitation program (offset wasn't taken off with IRS until after 6th monthly payment) that i would be able to file and not have them taken. I started in December, made a double payment in January and now i'm on my 6th payment in April. Today i was able to file my taxes after my information was updated with the debt collector, Department of Education and the IRS. I hated waiting but i'm in better standing with my loans and i can file w/out my taxes being taken. I have 3 more months until I'm out of default.

[Jenc1228]

Did you know you had an offset prior to filing taxes? And if so how did you know? I called the fiscal service number and got automated service which said no offsets found. But I’m not sure if my student loans were found or entered yet? 

[CatinaT1]

The IRS and State Governments have the ability to offset a refund to pay for certain past due debts.  You generally will receive a letter stating what the offset was for.  

The IRS provides a toll-free number, (800) 304-3107, to call for information about tax offsets.

[Jenc1228]

Thanks for your reply! Yes I know they can do that but my real question is when. I called that number and have no offsets as of now but when I actually file my taxes do they then realize I’m behind on student loans and then make an offset? Basically am I going to file then get a scr*wed? I’m so nervous 

[CassLO]

@Jenc1228  Unfortunately, TurboTax does not get any information from the IRS regarding your refund once your return has been accepted, so no one at TurboTax knows why the IRS offset or reduced your refund even if it showed you had no offsets. They run a check when processing your return and if they offset your refund you will receive a letter from the IRS in a few weeks. 

Please see the links below for additional information:

• Why is my direct-deposited refund or check lower than the amount in TurboTax?
• What is a refund offset?
• Tax Refund Offsets Pay Unpaid Debts