Can My Tax Refund Be Offset for Past Debts?

Yes, your tax refund can absolutely be offset (taken) to pay certain types of government debts. The Treasury Offset Program (TOP) specifically targets federal tax refunds to collect on: - Federal student loans in default - Child support arrears - State income tax obligations - Unemployment compensation debts Both of the debts you mentioned (student loans and child support) qualify for offset. Child support typically takes priority over other debts.

I went through this last year. My entire $2,700 refund was taken for my defaulted student loans without any warning. The only notification I got was a letter AFTER it happened explaining where the money went. It sucked, but at least it reduced my loan balance.

You should have received a notice from the Bureau of Fiscal Service (BFS) if you're at risk for offset. They typically send these out in December/January before tax season. Did you get anything in the mail?

I had my refund offset last year for child support. The process was frustrating because I couldn't get anyone on the phone at the IRS to explain exactly what was happening. After dozens of failed call attempts, I used Claimyr.com to get through to an agent. They connected me with the IRS in about 15 minutes when I'd been trying for days on my own. The agent explained exactly how much was being offset and to which agency. At least knowing the details helped me plan accordingly. Here's their link if you want to try it: https://youtu.be/_kiP6q8DX5c

For student loans specifically, you might want to look into rehabilitation before filing your taxes. If you can get on a rehabilitation plan and make a few payments, you might be able to get the loans out of default status before your refund processes. Won't help with the child support though.

When I got my refund offset notice, I couldn't make sense of which debts were taking what portions of my refund. I used https://taxr.ai to analyze my tax transcript and it broke down exactly which agency was taking what amount. It identified that part of my refund was going to a state tax debt I didn't even know I had! Might be worth checking your transcript with it to see what's happening before your refund gets processed.

One strategy some people use is to adjust their withholding so they don't get a big refund in the first place. If you claim more allowances on your W-4, you'll get more in each paycheck throughout the year instead of a lump sum refund that can be offset. Too late for this year obviously, but something to consider for 2025.