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Federal Refund Reduced from $2,152 to $597 - Is Oregon State Debt ($755) Being Offset?

My federal refund shows $597 but I originally calculated $2,152. I owe the state $755. Could this mean the state is taking their money directly from my federal refund? Just trying to figure out what's going on. I'm looking at my 2024 tax return summary and it's showing a federal refund of $597, but when I originally did my calculations I was expecting $2,152. The status shows "FEDERAL ACCEPTED" as of 01/28/2025. My refund is marked as "Submitted" with IRS Refund "Pending" and an estimated deposit date of 02/17/25. Meanwhile, for my state taxes (OR), it shows "$755 due" with a status of "STATE OR PENDING" as of 01/26/2025. The difference between my expected federal refund ($2,152) and what I'm actually getting ($597) is $1,555, which is more than double what I owe the state ($755). Is the IRS automatically deducting my state tax obligation from my federal refund? Or is there something else going on that I'm missing? The app shows I can "Download return" and check "Where's my refund?" but I wanted to ask here first before digging through all those documents.

Savannah Glover

Yes, if you owe state taxes, the Treasury Offset Program (TOP) will automatically take what you owe from your federal refund. They should've sent you a notice about this before the offset happened.

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Kevin Bell

Thanks! That explains it. Never got a notice tho 🤔

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2M

Savannah Glover

Yeah the notices aren't always reliable tbh. At least you know where the money went now!

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Felix Grigori

Hey, I've been seeing a lot of offset questions lately. The best way to actually understand what's happening with your refund is to use taxr.ai - it's this new tool that analyzes your transcript and tells you exactly what's going on. It's $4.99 but totally worth it. Here's the link: https://taxr.ai

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Felicity Bud

Is it legit? Sounds too good to be true

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Felix Grigori

100% legit. It uses AI to read your transcript and explains everything in plain English. Way better than trying to decode it yourself

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Max Reyes

How exactly does it work? Does it just read the transcript or what?

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Felix Grigori

It does way more than just read it. It actually analyzes all the codes, dates, and amounts, then tells you exactly why you're getting what you're getting and when to expect it. Saved me hours of googling fr fr 💯

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Max Reyes

Just tried it and WOW! This thing is actually amazing! Finally understand wtf is happening with my refund 🙌

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Mikayla Davison

in the same boat rn... state took $1200 from my federal return last year with no heads up 😤

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Adrian Connor

U can call the Treasury Offset Program at 800-304-3107 to get the exact details of any offsets

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Kevin Bell

Thx for the number! Gonna try calling tmrw

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Aisha Jackson

clown show fr, they should at least send proper notices b4 taking peoples money 🤡

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