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Dealing with tax offsets is like trying to navigate a maze blindfolded. I was in your exact situation last year. My loans were technically in default even though I thought I was covered by COVID forbearance. Think of the offset program as a fishing net - if your loans are in default, you'll get caught in it. My advice? Call the Default Resolution Group immediately and ask about rehabilitation options. Once you start that process, you might be able to request a refund of the offset based on financial hardship.
I successfully protected my refund this year despite having defaulted loans. The key was enrolling in the Fresh Start program in January before filing my taxes. My $32,000 in federal loans were preventing me from getting my $4,100 refund in previous years. The Fresh Start program temporarily removed my loans from default status, which made them ineligible for offset. Just received my full refund last week with no offset. The program is still active but won't last forever.
The IRS is probably somewhat backlogged with amended returns right now. In my experience, which is admittedly limited to just my own situation last year, it took almost 4 months for my amendment to process. You might want to consider pulling your tax transcripts if possible - sometimes they show movement even when the Where's My Amended Return tool doesn't update. I saved myself a lot of worry (and potentially paying for professional help) by checking my transcripts regularly.
Have you tried checking your tax account transcript instead of just the WMAR tool? Sometimes the transcript shows activity even when the amendment status tool doesn't update. And have you received any letters or notices in the mail? The IRS often communicates by mail rather than updating their online systems, especially when they need additional information, don't you think?
This is normal. Happens every year. System overload. Try again tomorrow. Different browsers help. Mobile sometimes works better. Don't panic. Your return isn't lost. Just a display issue. WMR isn't connected to main IRS database directly. It's just a status tool.
This happened to me last month and I was FREAKING OUT because I needed that money for my car repair! š I kept checking 3-4 times a day and getting more stressed. Then suddenly on a Saturday morning it was back to normal showing my status, and I got my deposit the following Wednesday. The emotional rollercoaster was REAL but it all worked out. Hang in there! ā¤ļø
Instead of verifying by phone, request an in-person appointment at your local Taxpayer Assistance Center. Use the IRS TAC appointment system online to schedule. This verification method is often faster than phone verification, which can take weeks for processing. The in-person verification is immediately recorded in the IRS system, potentially expediting your refund by 7-10 days compared to telephone verification.
Be extremely careful if you're getting messages about verification! My brother-in-law got a text claiming to be IRS verification that was actually a scam. Real IRS verification is only through official letters, their secure online portal, or by calling their official numbers. They never initiate contact through text or email for verification purposes. The scammers are getting really sophisticated with military families this year.
Omar Zaki
Pro tip: If you do end up waiting the full 10 weeks, you'll likely get interest added to your refund. Small consolation, but at least it's something. Current IRS interest rate is 7% annually, which is better than most savings accounts.
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CosmicCrusader
Did you file with a tax preparer or software? Sometimes they can provide insight on common errors that might have triggered the review. Also check if you have any past due debts that might cause an offset - that sometimes triggers additional review.
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Emma Davis
ā¢I used TurboTax like I do every year. No debts that I know of! My return is pretty simple - W2, child tax credit, nothing fancy. That's why I'm so confused about what could possibly be wrong.
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CosmicCrusader
ā¢Could be identity verification then. The IRS has been extra cautious with Child Tax Credit claims the last two years. Might be worth calling specifically about ID verification - sometimes that's handled by a different department.
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