rwasek
New Member

I was in a chapter 13 during 2018 and the IRS kept my refund. Am I allowed to deduct that refunded amount they kept and put it towards my 2019 taxes?

 
AmyC
Expert Alumni

Retirement tax questions

No. Your money was taken for debt not a tax payment.

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rwasek
New Member

Retirement tax questions

Actually it was not applied to a debt.  It was taken and not applied to anything owed for debt or taxes. 

GiseleD
Expert Alumni

Retirement tax questions

The IRS offset this for a reason, and you cannot take a tax deduction for an offset refund. 

 

The IRS can offset refunds for many different things:

  • Past-due child support;
  • Federal agency non-tax debts;
  • State income tax obligations; or
  • Certain unemployment compensation debts owed to a state.

I recommend contacting the Department of Treasury's Bureau of Fiscal Service (BFS) Offset Line to get details on your offset. You can contact the BFS call center at 800-304-3107, Monday through Friday, 7:30 a.m. to 5 p.m. CST. Please keep in mind that you will need to wait until the IRS reopens to make this call. 

 

@rwasek

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