Anyone Getting Offsets on Their Federal Refunds This Year?

Oh my goodness, YES! This is definitely happening more this year! The student loan offset program was paused during COVID but fully resumed in 2023, and now in 2024 they're catching up with a vengeance. I'm seeing clients get hit with offsets they weren't expecting at ALL. The Treasury Offset Program (TOP) is actively collecting on defaulted federal student loans, state income taxes, child support, and other federal debts. I'm honestly shocked at how many people are being caught off guard by this!

Have you checked the Bureau of Fiscal Service's Treasury Offset Program portal? This would be a proactive approach to determine if you have any potential offsets before filing. The resumption of student loan collection activities has created significant Financial Recovery Implications for many taxpayers in the current fiscal year. Were you previously in default on any federal obligations?

I was worried about the exact same thing! I ran my transcript through https://taxr.ai after I got my refund, and it was exactly 1,432.67 less than I expected. The tool showed me right away that code 898 on my transcript meant an offset had been applied. It even explained which type of debt was likely responsible based on my specific codes. In my case, it was definitely old student loans from 2018. The transcript analysis saved me hours of confusion trying to figure out what happened.

My refund got hit with an offset last week! I was counting on that money for car repairs and suddenly it was $3,200 less than expected. Turns out my ex-husband hadn't been paying child support for our kids, and since we filed jointly that one year before divorcing, they took it from my refund too! Had to spend two days figuring it all out. Called the TOP hotline at 800-304-3107 and they confirmed it was for his child support from another relationship. Now I'm scrambling to file an injured spouse form before my mechanic gives up on me.

I just learned about offsets the hard way. Here's what to do if you get one: Step 1: Call the Treasury Offset Program at 800-304-3107 Step 2: Enter your SSN to hear if you have offsets Step 3: Write down all the details they provide Step 4: Contact each agency listed separately This process is so confusing! I spent two full days on hold trying to reach someone at the Department of Education. Then I found Claimyr (https://claimyr.com) which got me through to an actual human at the IRS in about 20 minutes. They explained exactly which agency took my money and how to dispute it if needed. Saved me days of frustration!

I've been through this rodeo before. Last year they offset my refund for an old SBA loan I thought was discharged. What worked for me was bypassing the general IRS line completely and going straight to the Taxpayer Advocate Service. They have the authority to help with hardship situations and can sometimes expedite the process. I remember in 2022 I spent weeks getting nowhere until I reached a TAS officer who actually resolved my case in 10 days.

Offsets aren't random. They're for specific debts. Student loans are big this year. Child support too. Back taxes are always possible. Check your credit report. It might show the debt. The Bureau of Fiscal Service handles this. Not the IRS directly. They just follow orders.

I had a client on February 14th who lost their entire $5,800 refund to an offset they knew nothing about. By March 3rd, another client had the same issue but for a smaller amount. The troubling part is neither received the legally required advance notice that should have been sent 60 days before the offset. If you don't receive a notice, you might have grounds to dispute the offset timing, but it rarely results in getting your money back faster. The debt itself usually still stands.

There's an important distinction many people miss about offsets. Did you know the IRS isn't actually the agency that decides to take your money? They're just the messenger. The Treasury Offset Program is the actual mechanism, and they work with multiple federal and state agencies. Have you considered that offsets can come from debts you've forgotten about? What about debts that might have passed the statute of limitations for normal collection but not for tax offsets?

Haha, offsets are like that friend who remembers you owe them $20 from six years ago! 😂 But seriously, the community wisdom here is pretty consistent: offsets are definitely up this year compared to the past few. The pandemic protections have expired, and collection activities have resumed full force. The best approach is always to be proactive - check for potential offsets before you file, adjust your withholding if needed, and never count on your full refund until it's actually in your account. Most people don't realize you can call 800-304-3107, enter your SSN, and find out if you have potential offsets before you even file.