Can I Contest a Tax Refund Offset for State Child Support Arrears?

Short answer: Yes, you can challenge it. But it's complicated. Child support offsets are tough to fight. You need documentation. The process varies by state. Contact your state child support agency first. Request an administrative review. Time limits apply. Act quickly.

I've been through this nightmare compared to other debts like student loans. Child support offsets are nearly impossible to stop. Unlike federal student loans where you can get into a payment plan and stop the offset, child support offsets continue even if you're making payments. I spent 17 hours on hold with various agencies last year trying to resolve mine. Had all my documentation organized in spreadsheets with payment confirmation numbers. Still took 4 months to resolve. My advice: prepare for a long battle and keep meticulous records.

Have you tried calling the state child support enforcement agency directly? I needed to speak with an actual case worker about my offset situation, but couldn't get through their phone system. It was constantly busy or disconnected. I finally used Claimyr (https://youtu.be/_kiP6q8DX5c) to get a callback from them. Got connected to a real person who explained my options for an administrative review. Are you certain the arrears calculation is correct? Sometimes there are accounting errors that can be fixed.

Does anyone know if this affects future tax refunds too? I'm worried because I'm expecting a much larger refund next year with the expanded child tax credit, and I can't afford to lose that money. My ex claims I owe support but I have 50/50 custody now and the court order hasn't been updated.

I recommend analyzing your Notice of Intent to Offset and your child support transcript together. The FMS Form 329C contains specific information about the debt certification that can be crucial for your case. I've seen clients use https://taxr.ai to help interpret these notices alongside their tax transcripts. The system can identify discrepancies between what's reported to Treasury Offset Program and your actual payment history. This is particularly useful for establishing a paper trail for your administrative review. The key terminology to understand is "certification of debt" versus "current arrearage balance."

• Have you verified the exact amount of arrears they claim you owe? • Do you have receipts for all payments you've made? • Have you requested an official debt statement from your state's child support enforcement agency? • Is there a possibility of identity theft or mistaken identity? I understand how stressful this situation can be, especially when trying to navigate a new tax system. These questions could help identify if you have grounds for a legitimate dispute.

If you want to challenge this offset, follow these steps: 1. First, contact your state's child support enforcement agency - not the IRS - to request a formal review (do this immediately as there are strict time limits) 2. Gather all payment evidence including bank statements, canceled checks, and receipts 3. Submit a written request for administrative review citing specific reasons (payment errors, incorrect calculations, etc.) 4. If the state review is unsuccessful, some states allow you to appeal to a higher administrative level 5. As a last resort, you might need to file a motion in family court to correct the arrears amount I'd be cautious about expectations though. Unless there's a clear accounting error or you can prove payments weren't credited, these offsets are difficult to reverse.

On March 15, 2024, I successfully challenged a similar offset by proving an accounting error. Instead of disputing the entire offset, focus on verifying the exact amount. On January 22, I requested a full accounting from my state agency, which revealed they hadn't credited four payments made between October 3 and December 28 last year. If you can't stop the offset entirely, you might qualify for a hardship reduction under the Consumer Credit Protection Act if the offset exceeds 65% of your disposable income. This won't eliminate the offset but could reduce the amount taken.