topic Illinois Offsetting Federal Refunds? in State tax filing

Illinois Offsetting Federal Refunds?

Nikkiwright525 — Mon, 22 Mar 2021 16:07:24 GMT

Does anyone know if Illinois is offsetting federal refunds this year for balances due on previous state taxes? I was told by an IL Dept of Revenue agent on a call that they were not but I know agents tend to tell you what you want to hear right now so I’m hoping someone knows by experience. Thanks!!!

Re: Illinois Offsetting Federal Refunds?

LenaH — Mon, 22 Mar 2021 16:44:27 GMT

Your federal tax refund will be offset if you owe federal or state income taxes from past years, as well as debt such as child support or a past due federal student loan. The IRS will notify you by mail if your refund was offset by state tax debt. You can also look at your your IRS transcript to determine if it was garnished by Illinois at Get My Transcript.

For more information, please see Who Can Garnish an Income Tax Return?

Re: Illinois Offsetting Federal Refunds?

Nikkiwright525 — Mon, 22 Mar 2021 18:38:54 GMT

What if we are in a payment arrangement with the state for past tax debt?

Re: Illinois Offsetting Federal Refunds?

TomD8 — Mon, 22 Mar 2021 19:27:40 GMT

Here's what Illinois says:

If you entered into a repayment agreement with IDES and you missed a payment, stopped making payments, or made payments in amounts less than what is required by your repayment agreement, you have defaulted on your repayment agreement and IDES may send your debt to the Treasury Offset Program (TOP) for offset of your federal income tax refund.

https://www2.illinois.gov/ides/individuals/UnemploymentInsurance/Pages/Treasury-Offset-FAQ-Updated.aspx#h18

Re: Illinois Offsetting Federal Refunds?

Nikkiwright525 — Mon, 22 Mar 2021 19:50:25 GMT

It wasn’t for IDES it for past state taxes