Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
roblohc1223
New Member

If I owe the irs 2000$ are they just going to take that out of my refund this year or how does that work cuz I didn’t get the paper in the mail for owing until after I had all ready filled

 
1 Best answer

Accepted Solutions
DDollar
Level 7

If I owe the irs 2000$ are they just going to take that out of my refund this year or how does that work cuz I didn’t get the paper in the mail for owing until after I had all ready filled

Yes, if you filed showing you were due a refund, but you owe the IRS for for prior years, then they will use your refund to pay that tax liability. It's called a Tax Offset.  If you owe money because of certain delinquent debts, the IRS or the Department of Treasury's Financial Management Service (FMS), which issues IRS tax refunds, can offset or reduce your federal tax refund or withhold the entire amount to satisfy the debt.

If you owe federal or state income taxes your refund will be offset to pay those taxes. If you had other debt such as child support or student loan debt that was submitted for offset, FMS will take as much of your refund as is needed to pay off the debt, and send it to the agency authorized to collect the debt. Any portion of your refund remaining after an offset will be refunded to you.


View solution in original post

1 Reply
DDollar
Level 7

If I owe the irs 2000$ are they just going to take that out of my refund this year or how does that work cuz I didn’t get the paper in the mail for owing until after I had all ready filled

Yes, if you filed showing you were due a refund, but you owe the IRS for for prior years, then they will use your refund to pay that tax liability. It's called a Tax Offset.  If you owe money because of certain delinquent debts, the IRS or the Department of Treasury's Financial Management Service (FMS), which issues IRS tax refunds, can offset or reduce your federal tax refund or withhold the entire amount to satisfy the debt.

If you owe federal or state income taxes your refund will be offset to pay those taxes. If you had other debt such as child support or student loan debt that was submitted for offset, FMS will take as much of your refund as is needed to pay off the debt, and send it to the agency authorized to collect the debt. Any portion of your refund remaining after an offset will be refunded to you.


About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.63m
Discussions

Manage cookies
v
ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrstuvwxyz0123456789-_~