For a one cent discrepancy, I'd honestly just pay it through the IRS Direct Pay website and be done with it. Takes 5 minutes, no fee for using a bank account, and you'll get confirmation that your account is settled. I had something similar happen (mine was $0.37) and just paid it online. Haven't heard anything since, so I assume it's all good!

Whatever you do, don't ignore it! Even though it's just a penny, it's still technically a tax debt that will stay in their system. I ignored a small adjustment once (it was around $3) thinking it was too small to matter, and a year later received a notice with interest and a $25 failure-to-pay penalty added. That $3 turned into almost $30! The IRS computers don't care about the amount - once you're flagged for owing money, the automated processes just keep running.

Just a heads up for anyone filing - if your income is over certain thresholds, the Child Tax Credit starts to phase out. For single filers, it starts reducing when your modified adjusted gross income exceeds $200,000. Could that possibly be affecting your amount? The credit reduces by $50 for each $1,000 above the threshold. Might be worth checking if your income jumped more than you realized.

Has anyone tried using different tax software to see if you get different results? Last year I switched from TurboTax to H&R Block online and somehow got an extra $420 back. Might be worth trying a different service to see if they calculate things differently or find additional credits.

Just to add a different perspective - I work as a volunteer tax preparer, and filing status questions are some of the most common issues we see. For Surviving Spouse status (sometimes called Qualifying Widow/er), the rules are very specific: 1. Your spouse must have died in one of the two prior tax years 2. You must have a child, stepchild, or adopted child who qualifies as your dependent 3. This child must live in your home 4. You must pay more than half the cost of keeping up the home The dependent requirements are key. A qualifying dependent child generally needs to be under 19, or under 24 if they're a full-time student, AND they can't provide more than half of their own support. I recommend using the Interactive Tax Assistant on the IRS website. It walks you through all the requirements step by step.

Don't forget that if your dad doesn't qualify for Surviving Spouse status, Head of Household might still be better than Single! Even if you don't qualify as his dependent, does he support anyone else who might qualify? The tax rate differences between Single and Head of Household can be significant. Also check whether he qualifies for the Credit for Other Dependents ($500) for supporting you, even if you don't meet all the tests to be a qualifying child or qualifying relative. The income limits for this are different from the dependency requirements!

Pro tip from someone who deals with this regularly: call your state tax agency directly rather than focusing on the IRS. The IRS just processes the offset - they don't actually have details about the underlying debt. When you call your state, ask specifically for the "offset resolution department" or "refund intercept team" - using those exact terms helps get you to the right people faster.

Just to add another perspective - check if your state has a Taxpayer Advocate Service. When we had an offset situation last year, our state advocate was able to put a temporary hold on collections while we worked out a payment plan. They even helped identify an error in the calculation that reduced our debt by almost $800!

Just FYI your dad is probably from the generation that doesn't trust digital stuff with taxes. My mom freaked out when I told her I file electronically every year and don't mail paper forms. She still insists on printing everything and keeping paper copies "just in case." Some people just prefer the old way of doing things.

Don't forget to check if your W-2 has any special entries in boxes 12-14! Those can have codes that affect your tax situation, and sometimes they don't scan properly in photos. I missed a student loan repayment benefit code one year and ended up having to file an amendment.