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harveywillie
Returning Member

The Department of Education has said they have stopped seizing tax refunds for loans in default. My refund was approved but ita still saying that it will be offset by the Department of Education. Why

 
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8 Replies
ColeenD3
Expert Alumni

The Department of Education has said they have stopped seizing tax refunds for loans in default. My refund was approved but ita still saying that it will be offset by the Department of Education. Why

UPDATED: On March 25, 2020, ED announced that my federal tax refund would not be withheld to repay my defaulted federal student loan debt. My refund has already been taken. Will I get it back?

 

Yes, but only if your federal tax refund was in the process of being withheld—on or after March 13, 2020, and before Sept. 30, 2020—for the repayment of a defaulted federal student loan. Your federal tax refund will not be returned to you if the process to withhold your refund was completed before March 13, 2020.

If you have questions about whether your federal tax refund was withheld, call ED’s Default Resolution Group at 1-800-621-3115 (TTY for the deaf or hearing-impaired 1-877-825-9923).

 

Offset

 

@harveywillie

harveywillie
Returning Member

The Department of Education has said they have stopped seizing tax refunds for loans in default. My refund was approved but ita still saying that it will be offset by the Department of Education. Why

So just to confirm...my return was accepted on March 21 therefore I should ignore this message? Or are there additional steps that need to be taken?

Polish_20200405_124252547.png

 

The Department of Education has said they have stopped seizing tax refunds for loans in default. My refund was approved but ita still saying that it will be offset by the Department of Education. Why

I would suggest waiting a few weeks - maybe they didn't update the messaging yet.  That refund should be sent to you as indeed offsets were stopped on the day the CARES act was signed by Trump.  

aflrs1978
New Member

The Department of Education has said they have stopped seizing tax refunds for loans in default. My refund was approved but ita still saying that it will be offset by the Department of Education. Why

I have the same issue. I filed March 26. It's been approved but still says offset. I'm hoping that system is not updated.

MaryK4
Expert Alumni

The Department of Education has said they have stopped seizing tax refunds for loans in default. My refund was approved but ita still saying that it will be offset by the Department of Education. Why

See ColleenD3's answer above-

If the offset was being processed before March 13, 2020 you will not be able to get the refund back even if you filed after the 13th.

@hokietrax,

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Sluglass
New Member

The Department of Education has said they have stopped seizing tax refunds for loans in default. My refund was approved but ita still saying that it will be offset by the Department of Education. Why

Did you get your refund or did they swipe it from you. People are still getting that dreaded message.

 

Thx

Jules30
New Member

The Department of Education has said they have stopped seizing tax refunds for loans in default. My refund was approved but ita still saying that it will be offset by the Department of Education. Why

I have also got a tax offset but I filed my taxes in February and received a partial refund on Feb 26. However I received an email from Department Resolution Group stating I am owed a refund. I wonder if it is just a generic email to everyone. Or am I actually getting my offset refunded. I am aware of the March 13 deadline but the email I received is confusing. 

Cgonza210
New Member

The Department of Education has said they have stopped seizing tax refunds for loans in default. My refund was approved but ita still saying that it will be offset by the Department of Education. Why

My refund was offset from my wife's deparment of education loan and deposited into my account on February 27th. We still recieved a letter in the mail stating we were owed a refund due to the CARES ACT. I do believe these are generic emails since we called the department of education and they said we would not be getting a refund. 

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