Offset not taken-Strange Situation

[Brittann]

Hello. I have a unique situation. 

My husband and I filed joint this year even though I was the only one with income and we knew we'd have an offset for just under $600 from my husband's 2015 taxes to the State of Michigan (long story). When I called the offset line it was listed, so we were expecting it.

My DDD was for 2/26 per my transcripts and WMR, but I got my deposit on 2/21 early into my Chime account since Chime doesn't hold deposits. However, the amount was for my FULL refund ($2800 vs. $2200), and the offset was NOT taken out. Now when does THIS happen? 

When I call the offset line back now it says it was paid from my DD scheduled for 2/26. I am so confused. I thought that no refunds were sent before they were checked for offset, and the offset line is saying it was paid even though it wasn't taken out of my refund direct deposit. Now I don't know who to contact or what to do. The State of Michigan won't show record of anything right away, and I'm not sure who to talk to. I am wondering what will happen now if it's saying it's been paid when it hasn't been, and my deposit has already posted. Any help is appreciated. Thank you! 

[SusanY1]

Generally speaking, they can't take it back out of your deposit once it has been set.  You have not granted permission for direct debits, only direct deposits.  

I am not sure if the Chime early deposit piece could mean that the deposit can't get "corrected", however.  

It's a bit of an unusual situation - so I would probably leave the funds untouched (or at least the $600 offset amount) until at least 2/26 in case of any sort of deposit adjustment/correction.  

I would also suggest waiting a week or two after that date (if the full amount of the deposit remains) and then check with the state of Michigan again as well.  

[Brittann]

Thank you. It is unusual, isn't it? I've never heard of money NOT coming out, lol. 

I do have the $600 set aside in my savings so I can have them take it back if they need to. They way I always understood it, all refunds are checked against or for offsets and then the money that is left is transferred to the individual...so how it was checked, claimed as being "paid", and then sent to me in full is so confusing. The only thing I could think is that they looked at the offset request and realized it was past the 6-year collection statute for MI, though that also seems unlikely. I really don't know.  Thank you for the advice! 

[SusanY1]

It is definitely unusual! I've never heard of it either.  

Your understanding of how it works is the same as mine. If the issue is the Michigan statute being past to collect, you would not expect the offset line to give you the amount when you checked.  

I know of no reasonable explanation for it not being offset given what you describe,  unless perhaps there was a Michigan refund that covered it first? 

[Brittann]

I haven't filed my MI state taxes yet. I did my federal first, knowing I would have to pay into the state and wanted to use some of my federal refund to do that (I am a self-employed non-profit consultant/grant writer, so I knew I'd have to pay in this year and was expecting it).  I will call tomorrow and see. Thanks for the insight, even just for me to know that I am not crazy in thinking the situation is odd. I appreciate it. 🙂