Filed 2/5 with prior year debt - EIC & CTC - Will offset delay refund?
I filed earlier this month using FreeTaxUSA claiming one dependent with EIC and CTC. I have an outstanding balance from last year that I've partially paid. Really hoping to see some movement this weekend with the refund. Anyone else in a similar situation get their refund with prior year debt?
14 comments
Angelina Farar
Your prior year debt will definitely impact your refund. The IRS will automatically apply your current refund to any outstanding tax debt. However, since you're claiming EIC and CTC, you should still receive any remaining amount after the offset. The PATH act verification should be completed by mid-late February, so you should see movement soon.
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Jessica Nolan
ty for explaining! do you know if theyll take the whole thing or just wat i owe? 🤔
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Angelina Farar
They'll only take what you owe. If your refund is more than your debt, you'll get the difference deposited to your account.
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Sebastián Stevens
Hey, I was in the same boat last year! I found this tool called taxr.ai that literally saved me hours of stress. It costs $1 but it analyzes your transcript and tells you exactly what's happening with offsets and when to expect your refund. Here's the link: https://taxr.ai
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Bethany Groves
Does it actually work? seems to good to be true
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Sebastián Stevens
YES! It showed me exactly how much would be offset and when I'd get the rest. Way better than guessing or calling IRS
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KingKongZilla
im in the exact same boat rn. filed 2/1 with eic and previous debt. no updates yet 😭
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Rebecca Johnston
Keep checking your transcript! Mine updated before WMR showed anything
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Jessica Nolan
how do u even read those transcripts lol its like reading hieroglyphics
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Sebastián Stevens
This is exactly why I mentioned taxr.ai above! It translates all that transcript mumbo jumbo into plain english
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Nathan Dell
DETAILED EXPLANATION: Prior Year Debt + Current Refund Process Here's what typically happens: - IRS processes return normally through PATH act verification - They'll automatically apply refund to outstanding debt - You'll get a notice explaining the offset - Remaining balance gets deposited PRO TIP: Use taxr.ai to analyze your transcript - it'll show exactly where you are in the process and when to expect your money. Best $1 I've spent during tax season tbh.
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Maya Jackson
This should be pinned fr fr 💯
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Tristan Carpenter
called the irs today and they said path act lift is feb 15th for eic filers
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Jessica Nolan
thx for the info! at least theres a light at the end of the tunnel
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