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Level 2
posted Feb 23, 2025 11:27:52 PM

Received my refund, but expected tax offset

I just received my tax refund. I used the 5 days early option that was offered this year. I was expecting a treasury offset in the amount of around $3000 but I received my full expected tax refund amount without the Treasury offset deducted. I called the Treasury offset line and it does tell me that my payment was reduced by around $2600, but that did not reflect in the amount I received from TurboTax. I already received my state tax refund as well and it was reduced, but only by around $300. 

 

Are they going to debit the offset from my bank account? Am I going to owe Turbotax?

0 13 5154
13 Replies
Expert Alumni
Feb 24, 2025 5:39:18 AM

Interesting, but no, an offset for debt will not be automatically taken out of your bank account without a garnishment. Your TurboTax fees should have been deducted before you received your deposit.

Level 2
Feb 24, 2025 5:59:37 AM

I paid for the fees out of pocket, other than the $25 for the 5 days early. 

Level 1
Feb 27, 2025 6:54:44 AM

I'm going through the same thing gor my deposit yesterday for the full amount expected 9,339 offset and still got my full refund. Do you know if we will get in trouble for keeping it or ? 

Employee Tax Expert
Feb 27, 2025 12:00:17 PM

If you know you have a tax offset that you owe, I would either set it aside or contact the appropriate agency for further guidance depending upon your state of residence.

 

@Roodney96 

New Member
Mar 1, 2025 6:52:17 PM

Did it show up on your transcripts that it was being offset? It shows up on mine and I checked the mail app and it says I have a check otw but my offset was supposed to be for my full amount 

Level 2
Mar 1, 2025 7:31:13 PM

Yes, it shows on my transcript that 2641 was applied to non-irs debt. But I received the full refund of 7403. Still nothing on TurboTax website, the child support website where the money should have been sent, and the deposit from TurboTax has posted to my bank account now. 

Level 2
Mar 1, 2025 8:50:37 PM

I just got off the phone with TurboTax. They don't see anyting on their end except for the full amount that was sent to me and they say there is nothing wrong and that I don't owe them anything. They told me to call the IRS. Doesn't make any sense to me. But whatever.

Level 1
Mar 3, 2025 8:39:29 PM

This exact same thing happened to me. Was supposed to have an offset for $590 but got full refund. Call offset line and it says it was deducted, and we got the letter saying it was taken...but it wasn't. Mine was for my husband's state taxes from 2015. Did you find anything out???

New Member
Mar 3, 2025 10:28:47 PM

Did u receive something in the mail from the treasury after receiving your full amount?

New Member
Mar 3, 2025 10:29:17 PM

Did u receive something in mail from treasury 

Level 2
Mar 3, 2025 10:56:51 PM

I haven't found anything out yet, and I haven't received anything in the mail from treasury yet, but I expect to.

 

My transcript updated with an 898 code showing the amount that was applied to my non-irs debt. And my WMR shows that my refund was offset as well. But I still have the money and no one is claiming I owe them anything. My debt also does not show as being paid as of midnight.

New Member
Mar 4, 2025 5:16:09 AM

The same exact thing happened to us. Does anyone have an update?

Level 1
Mar 4, 2025 5:32:04 AM

I checked my transcripts after calling the treasury and being told they didn't know. My transcripts says offset for 9,339 on non federal debt but the amount taken os $0.00 make sure you check your transcripts. It'll be at the end of the transcript on the right corner on the bottom look for the dollar amount of it says $0.00 your good to spend your money