Does the irs ALWAYS take your whole refund due to an offset from a student loan?

[charcamp10]

My debt due to a student loan is larger than what my refund is. Does that mean they will take my whole refund or could I possibly still recieve some of my refund?

[jones214girl]

Sad to say but yes, if the amount owed is more than your total refund yes they will take your entire refund to cover some of what you owe. Most people get on a payment arrangement before I long taxes so that way they won't take your money.

[burns9206]

Yes.  I had this happen to me a number of years ago.  I owed approximately 5k and my refund was near 3.5k.   I got nothing back that year.  While they continued to call me for the rest of the money. 

[charcamp10]

I just read on another question on here they only take 15% of your refund. Is this true?

[SweetieJean]

No, that is not true. They can take the whole amount.

[christib-3113]

Well I was told by the bureau of fiscal services that I have an offset that may or may not start this year. The irs says there are no indicators of offset on 2015 refund??

[charcamp10]

I know I have an offset but how do I know if it will go through this year?

[christib-3113]

That's what I'm wondering. Shouldn't the irs know by now?

[charcamp10]

Okay so did someone tell you even if you are on the offset list it may not go through immediately?

[christib-3113]

No, I can't get a straight answer to that, but everyone has said "you taxes MAY be" or "COULD be". I never received a letter from dept of ed, I was given a number by a friend to call and check

[Brenbrad1]

They will take it all. Happened to me last year. If the irs said they hav no indicator for 2015 maybe they will wait till next year. Which if thats the case get on a payment program with your school loan holder asap so u wont be in offset next year. The TOPS are the dept that you call to find out if you hav an offset and they say they send the who owes info to the irs weekly.

[fanfare]

From Pub 17 "
Offset against debts. If you are due a refund
but have not paid certain amounts you owe, all
or part of your refund may be used to pay all or
part of the past-due amount. ... You will be
notified if the refund you claimed has been offset
against your debts."

No clue given as to what the rules might be. It probably means if you have more than one debt it gets divided somehow.

[Brenbrad1]

They send u the letter after they take it. Did u get ur return yet? Or offset yet?

[Kuku7772]

This is a different but part of the question. 

I own a judgment and loan money, they won, part of it is taking my refund. 

Question: what if I choose to apply/add refund amount to next year when I file the return(eg refund amount 2020 is 500, add 500 to 2021, making 2020 amount 0.. 

[Critter-3]

Sorry that will not work although a nice idea  ... because the refund will be taken in full then you have nothing to apply to next year.  If you try that you will get an IRS letter letting you know the applied amount was disallowed.