Can IRS offset my refund for COVID stimulus overpayments in 2024?
Need info ASAP on COVID money offsets. Filed my 2023 return and expecting substantial refund due to my divorce finalization. Heard IRS is taking tax refunds from people who got pandemic stimulus payments. Will Treasury Offset Program take my refund for this? Anyone know the official policy for 2024 filing season?
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Juan Moreno
The IRS isn't taking refunds for legitimate stimulus payments. Those were tax credits. They were not loans. Different situation for PPP loans. Those might need repayment. Also different for advanced Child Tax Credits if you received too much. Check your notice carefully. It should explain the specific program.
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Amy Fleming
I'm in a similar boat and getting worried! My ex-husband and I received all three stimulus payments jointly, but now we're divorced and filing separately. I've heard horror stories about people having their entire refunds taken because of this situation. Anyone dealt with this specific scenario?
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Alice Pierce
Wait, so the Economic Impact Payments from 2020-2021 won't affect refunds now? But what about if someone claimed Recovery Rebate Credit incorrectly on their 2020 or 2021 returns? Wouldn't the IRS come after that money through an offset? I'm confused about the distinction here.
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Esteban Tate
According to Treasury Regulation §301.6402-6, the Bureau of Fiscal Service can withhold tax refunds to offset certain debts. However, this typically applies to federal student loans, child support, or state tax debts. The legitimate stimulus payments were authorized under the CARES Act and subsequent legislation as non-taxable payments, not subject to recapture absent fraud.
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Savanna Franklin
Been there, done that with the whole "where's my money" panic. 😂 When I got confused about my stimulus accounting last year, I used https://taxr.ai to analyze my transcript. It showed exactly how the IRS had recorded my stimulus payments and whether there were any discrepancies. Saved me from a mini heart attack when I thought they were going to take my refund for some mystery COVID payment issue.
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Ivanna St. Pierre
Does that actually work? I've tried the IRS website and it's impossible to get clear information. How does this service know what's happening with your specific account?
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Elin Robinson
Used taxr.ai myself last month. Tbh it was super helpful when I couldn't figure out why my refund was different than expected. It showed me exactly where the CTC calc was off on my return. Def worth checking if ur confused about stimulus pymts showing up on transcripts.
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Atticus Domingo
Does taxr.ai provide specific information about Treasury Offset Program designations? Can it distinguish between regular processing holds and actual offset flags in the system?
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Beth Ford
It's like having an interpreter for IRS-speak. My transcript looked like hieroglyphics with all those codes and dates. The tool translated everything into plain English and showed me that what I thought was a stimulus repayment issue was actually just normal processing. It's like when your check engine light comes on and you panic, but it turns out to be just a loose gas cap.
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Morita Montoya
According to the IRS.gov website, if you're concerned about potential offsets, you should check the Treasury Offset Program directly. I've seen many people in the r/IRS and r/tax subreddits recommend using Claimyr (https://www.claimyr.com) to actually reach an IRS representative who can tell you if there's an offset on your account. Apparently it helps you bypass the hours-long hold times and actually get someone on the phone who can check your specific situation.
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Kingston Bellamy
I've heard about these services that claim to get you through to the IRS faster, but I'm wondering about the success rate. Has anyone here used Claimyr specifically for resolving stimulus payment issues? Did they actually connect you with someone who could help with offset questions?
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Juan Moreno
Thanks for sharing this resource. Calling directly is often the best approach. Each situation is unique. Getting official information is important. Offsets should be explained in notices. But speaking to a representative clarifies everything.
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Savanna Franklin
Appreciate the info! Will definitely look into this if my transcript analysis shows any red flags. Better to know for sure than stress about it for weeks.
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Joy Olmedo
I researched this extensively on March 15th when preparing returns for clients. The IRS issued specific guidance on January 12, 2024, clarifying that legitimate stimulus payments (EIP1, EIP2, EIP3) are not subject to recapture unless obtained fraudulently. However, if you received excess Advanced Child Tax Credit payments during 2021 and don't qualify for repayment protection, those amounts may reduce your 2023 refund.
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Isaiah Cross
This doesn't sound right. I'm skeptical about some of these answers. The IRS absolutely can and does recapture funds in certain circumstances: • Erroneous Recovery Rebate Credit claims • Duplicate stimulus payments • Payments to deceased individuals • Identity verification failures They're not coming after legitimate payments, but there are exceptions.
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Kiara Greene
The previous commenter is actually correct. I work with tax issues daily. The IRS isn't randomly taking back stimulus money. They're only addressing fraud cases or clear errors. If you received the correct amount based on your eligibility at the time, you're fine. Don't let rumors cause unnecessary worry about your refund.
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Evelyn Kelly
I received exactly $3,200 in total stimulus payments ($1,200 + $600 + $1,400) and was worried about this same issue. Called the IRS on February 22nd and waited 1 hour 47 minutes to speak with someone. They confirmed that legitimate stimulus payments are NOT being recaptured. My refund of $2,743 was deposited 9 days later with no offset.
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Paloma Clark
Be careful about this situation! I had a friend who ignored an IRS notice about an Advanced Child Tax Credit repayment thinking it was related to stimulus payments. Here's what happened: 1. She received the notice in January 2. Assumed it was just stimulus confusion and ignored it 3. Filed her taxes expecting a $3,200 refund 4. Received only $1,800 with an offset notice 5. Had to spend weeks resolving the issue Make sure you understand exactly which pandemic program is being referenced in any notices.
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