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Level 2

Tax return garnished again for Defaulted Student loans

I will try to explain my situation in as much detail as possible. This year I had been waiting for my W2 and it got lost or somehow something happened. I had to get them replaced so could not even file my taxes until April 3rd. On April 4th, 2020 they were accepted and as of yesterday when I checked the "Where's my refund" app this is what I seen.


"Your tax refund has been approved for direct deposit"

"However, it may be partially or completely reduced to pay a past due obligation, such as child support, another federal agency debt, or state income tax. If so, the Bureau of the Fiscal Service (BFS), who issues IRS refunds, will send you a notice with the amount of the debt and contact information. The details of the debt are not provided to the IRS. This application will be updated with the refund amount remaining, if any, after the debt is deducted."


I was confused because as from what I was told by many people and read on MANY websites online that as of March 5th or the 13th not sure exactly anymore but that the US Dept of ED has suspended all types of collections on even defaulted student loans because they know people need the money especially during a time when many are out of work.


Well I called the number given to me to check and see if what they were referring to was my student loans. I was right and yes they said I had 1 debt offest and to contact the US Dept of ED. The issue is I cannot as they are not current open. I am just curious because yes they have taken my refund before but I thought with this new crisis order in action all collections be it from past or present were on hold. Also isn't the term offset just another way to word garnishment? I mean both need a court order to be put in place. I am just confused and wondering if anyone is dealing with the same thing and what to do if anything.


I read that even if you get this message that you will still get the refund but it is just a automated message and they will still return my sad little refund. Can anyone give me some insight into what may happen? I know one person said well if the offset was ordered BEFORE March 13th there is no chance of getting my money. My question to this response is even though yes the offset may have been in place 3 years ago (garnishment) wouldn't the new crisis situation that took effect TRUMP the attempt at trying to collect my money for payment?


Sorry for the very long post and I really appreciate anyone that took the time to read it and give any info. I just wanted to give as much info as I could. Thank you and Happy Easter!

2 Replies
Level 15

Tax return garnished again for Defaulted Student loans

I don't think anybody knows.  You have a  wait and see situation.  It would be very if your reported, back to the post, what happens in your case.

Level 2

Tax return garnished again for Defaulted Student loans

I will make sure to reply my horrible journey and hope for the best but expect the worst. I kind of seen this coming. I mean not trying to be a negative person but I figured if they were not suppose to garnish people that why even bother with that automated message. I figure if they made sure to let me see that message that I can kiss that tiny return gone and considering this Stimulus check is almost triple what my tiny refund is I am not holding my breath on that either. I mean if they feel the need to take my tiny return why hand me triple my return? 

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