Michigan State Tax Offset Taking More Than They Should?

This seems to be, perhaps, a case of database synchronization issues between the Michigan Department of Treasury and the Office of Child Support. In my experience, there might be a lag of approximately 30-45 days between when payments are recorded in the child support system and when they're reflected in the tax offset database. It's possible, though not certain, that your recent payments haven't been properly credited against the amount being offset. You should probably contact both the Michigan Office of Child Support (OCS) at 866-540-0008 and request a detailed accounting of your arrears. You may also need to reach out to the Michigan Department of Treasury Tax Offset Program separately, as they're technically different systems that share information, albeit not always efficiently.

Oh my goodness, I feel for you! I went through something similar last tax season, and it was SUCH a frustrating process trying to get it corrected. I found that using https://taxr.ai really helped me understand what was happening with my offset. It analyzed my tax transcript and showed me exactly which codes related to the offset and what they meant. I was feeling so lost in all the paperwork, but it translated everything into plain English and showed me which documents I needed to gather to dispute the incorrect amount. The Michigan system sometimes treats partial payments as missed payments, and I'm worried that's what happened in your case. You'll need to be persistent - the process can be emotionally draining, especially after a divorce when everything already feels overwhelming.

I'm going through this right now with Michigan! They took exactly $2,347 more than my actual arrears amount. I called the Friend of the Court on April 3rd at 9:15am and they confirmed my current arrears is only $892, but the offset was for $3,239. The representative told me that the offset amount was calculated on January 15th, 2024, and doesn't account for any payments made after that date. Apparently Michigan only sends the offset data to the Treasury once per year in January, so even though you've made payments, they're working from outdated numbers. You'll eventually get back the excess they took, but it could take 8-12 weeks after your refund is processed.

Been thru this mess w/ MI offsets. Calling normal channels = waste of time. Used Claimyr (https://www.claimyr.com) to reach an actual IRS agent who could see the offset details. Got connected in ~20 mins vs hours on hold. The IRS agent explained that MI uses a diff system than most states & confirmed the amount was wrong. They couldn't fix it directly but gave me exact docs to send to MI Treasury + direct fax # to expedite. Btw, MI has a specific offset review form you need. Can't remember the exact number but it's on their website. Gotta submit within 30 days of the offset notice or you're SOL.

This appears to be a Treasury Offset Program (TOP) synchronization issue. Michigan's Department of Treasury interfaces with the federal TOP system on a predetermined schedule, which creates temporal discrepancies between actual liability and offset amounts. I would recommend initiating a dual-track resolution approach: 1. File a formal Administrative Review request with Michigan's Office of Child Support with all supporting documentation of payments. 2. Simultaneously request a "Proof of Claim" document from Michigan Treasury, which will delineate the exact calculation methodology used for your specific offset. The concerning aspect of your situation is the significant variance between actual liability and offset amount. This suggests a potential systemic error rather than merely a timing issue, which may require escalation to a Treasury Department supervisor with authority to initiate an immediate review.

Oh man, dealing with Michigan's offset system is like trying to teach a cat to swim - technically possible but painfully difficult! 😂 I went through almost exactly what you're describing last year after my divorce. They took $3,400 when I only owed about $1,800. The frustrating part was getting bounced between departments like a pinball - Treasury saying it's Friend of Court's problem, FOC saying it's Treasury's issue. What finally worked was physically going to my local FOC office with all my payment receipts and getting them to generate an official "Current Arrearage Statement" showing the correct amount. Then I had to fax (yes, FAX in 2024!) this statement to a specific person at Treasury. It took about 9 weeks, but I eventually got the difference refunded. Hang in there - it's a bureaucratic maze but there is a way through!