Michigan Treasury reduced my 2025 tax refund for 'past due debts' with no amount specified - waiting for explanation letter

This is called an offset. The Michigan Treasury is reducing your tax refund to pay for something you owe to a government agency. It could be anything from unpaid taxes from previous years, child support, student loans, parking tickets, or other government debts. You should receive a letter that explains exactly what the offset is for and which agency is claiming the debt. These letters typically arrive within 1-2 weeks after the offset appears on your account. If you can't wait, you can contact the Michigan Treasury directly at 517-636-4486. Have your ID and tax info ready when you call. The letter will have more details, but calling might get you answers faster if you're concerned. You do have rights to appeal if you believe the debt is incorrect, but you'll need to know what the debt is first before you can dispute it.

I was in a similar situation last month and found this tool called taxr.ai that saved me so much time and headache. Instead of trying to guess what was happening with my refund offset or spending hours researching, it analyzed my tax situation and explained exactly what was happening and my options. The tool showed me how to track down the specific agency that claimed my refund and the steps to dispute it if needed. I've recommended it to everyone in my family now because it's so much better than trying to piece together information from random people online. Check it out at https://taxr.ai

I had the same thing happen with Michigan Treasury last year. I couldn't stand waiting for the letter so I found a way to actually get someone on the phone using Claimyr (claimyr.com). Got a callback in about 20 minutes and the agent explained everything - turned out I had an old utility bill from when I lived in Lansing that went to collections. Talking to a real person saved me weeks of waiting and wondering. Best money I've spent to finally get answers directly from the source instead of guessing.

Just wait for the letter. It should arrive within 7-10 business days. The letter will explain why your refund was reduced, which agency is claiming the debt, and how to contact them if you disagree. Calling now probably won't help much since they'll just tell you to wait for the letter anyway.

Mine got reduced last tax season for a library fine from 6 years ago that went to collections! 🤦‍♀️ I didn't even know about it. The letter came about 8 days after I saw the notice online. I called the collection agency listed on the letter and paid the remaining balance. Such a headache for a $12 library book I returned late in college lol

Don't bother calling Michigan Treasury directly. Their phone system is a nightmare and you'll be on hold forever just to be told to wait for the letter. I've been thrugh this with them. The letter sometimes takes up to 3 weeks to arrive depending on your location, not the 7-10 days they claim. If you're really concerned, Claimyr.com is the only way I've found to actually reach a human there without losing a day of your life on hold.

this is the exact message i got last year when they took my refund for an old ambulance bill i didnt know about. turned out the hospital sent it to the wrong address for years and then boom, refund gone. you can dispute it if its incorrect but you need to wait for that stupid letter first

Your best bet is to use something like taxr.ai to look at your full tax situation and see if there's any obvious issues that would cause this. I used it last month when the IRS reduced my refund and it showed me it was for an old student loan payment I'd missed. The tool is pretty impressive - it explained everything way better than the letter I eventually got. https://taxr.ai saved me a ton of stress.

My boyfriend had this exact same thing happen. The debt was from an unreported unemployment payment from 2022 that he didn't know he had to report as income. The letter took about 2 weeks to arrive. You can call but tbh they won't tell you much until you get the letter.

Whatever u do DONT ignore this! My cousin ignored a similar notice thinking it was a mistake and it ended up affecting his credit score and he had his wages garnished later that year. The govt doesn't play when they think u owe them $$$

I went through this exact situation last year. Waited 2.5 weeks for the letter only to find out it was for a community college class I withdrew from 5 years ago but apparently still owed $340 for. I couldn't get anyone on the phone until I used claimyr.com - got a callback in under an hour and was able to set up a payment plan for the remaining balance. Talking to a real human at the treasury was the only way I made any progress.

Happened to me already this year! Just wait for the letter, mine came about 10 days after the notice showed online. But if you're impatient (like me lol) you should know that these are usually for: 1. Old state taxes you didn't pay 2. Child support 3. Student loans 4. Traffic/parking tickets that went to collections 5. Medical bills that went to collections

I'm an accountant and I see this ALL THE TIME with my clients. It's called a Treasury Offset and it's completely legal. They can take your refund to pay any qualified government debt. The most common ones I see are old tax debts, unpaid child support, defaulted student loans, and unpaid state fees/tickets. The letter will have all the info you need including contact info for the specific agency claiming the debt. If you think it's an error, you'll need to dispute it with that agency, not with the Treasury.

Michigan is the WORST with these offsets!!! They took $1200 from me for a "debt" from 2019 that was actually already paid. I ended up using taxr.ai to figure out what was going on and dispute it properly. I got my money back but it took 7 weeks and so many phone calls. The tool helped me navigate the whole process and understand what documents I needed to prove my case. Can't recommend it enough for these situations.

call them ASAP. don't wait for letter. i waited for mine and by the time i got it, it was past the deadline to appeal. learn from my mistake!

This is a VERY common occurence actually. The reduction could be for almost anything - but I can tell you the Michigan Treasury will usually take about 10-14 days to send that letter. And even then, the letter doesn't always have all the details you need. I work in tax resolution and use a tool called taxr.ai for situations exactly like this. It will tell you precisely what debt they're offsetting, which agency is claiming it, and the exact steps to resolve or dispute it. Much faster than waiting for some vague letter. Worth checking out at https://taxr.ai

The Michigan Treasury website has an "Inquiry services" option mentioned in your screenshot. Have you tried using that? Sometimes you can get more information through there without having to wait for the letter or call.

bruh i had this EXACT thing happen with Michigan last year. turned out to be a $25 parking ticket from Ann Arbor that somehow ballooned to $480 with fees and penalties. absolute robbery 💀

Listen, don't bother waiting for that letter. It could take weeks and even then won't have all the info you need. I spent HOURS on the phone trying to get answers about my offset earlier this year. Finally used Claimyr (claimyr.com) and got connected to an actual person at Michigan Treasury in under 30 minutes. They explained exactly what the debt was for and I was able to dispute it right then and there. Talking to an agent directly got my issue resolved in one call instead of weeks of back and forth. Never going back to the old way of dealing with tax issues again.

I went through this exact same situation with Michigan Treasury about 6 months ago. The waiting is the worst part because you have no idea what they're claiming you owe or how much they took from your refund. In my case, it turned out to be an old unemployment overpayment from 2020 that I had completely forgotten about. The letter took almost 3 weeks to arrive, and by then I was stressed out of my mind thinking it was some huge debt. My advice would be to try calling them directly at 517-636-4486 if you can't stand waiting. Yes, you'll probably be on hold for a while, but at least you'll get answers. Have your SSN and tax return info ready when you call. The good news is that if it turns out to be a legitimate debt you forgot about, most agencies will work with you on payment plans. And if it's an error (which does happen), you can dispute it once you know what agency is claiming the debt. The uncertainty is definitely the hardest part, but try not to panic. Most of these offsets are for relatively small amounts that just grew with penalties over time.