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britt-naugle
New Member

My refund says it may be reduced due to federal offsets well the only thing i have is student loan payments and i pay them.. what could it be

I called the number to see if i had any offsets and it says no? My student loans were behind and i started paying them last month could it have been that?

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SamiaI
New Member

My refund says it may be reduced due to federal offsets well the only thing i have is student loan payments and i pay them.. what could it be

Yes, your refund could be offset for outstanding student loans.The government can take both (federal and state) of the refunds and apply it to the past due student loan balance. If the refund balance is more than the defaulted balance then you will get the remaining refund via check. If the refund balance is less than the defaulted balance then they will notify you of the new balance.You can contact the agency with which you have a debt to determine if your debt was submitted for a tax refund offset or you may call BFS's TOP call center at (800) 304-3107.

A refund offset is when an IRS refund is reduced or intercepted to pay off delinquent debt, such as past-due child support, outstanding student loans, or unpaid state income tax.

You'll get an explanatory letter from the Bureau of the Fiscal Service if your refund is offset. 

More info about refund offsets, including contact info and the appeals process, is on IRS.gov (Tax Topic 203).

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