VA State Tax Refund: DD Notification but Partial Check Coming Instead

I had this happen last year. Virginia usually withholds part of your refund if you have outstanding debts to the state - could be unpaid tickets, child support, or even student loans. The direct deposit portion comes quickly, but the check for the remainder took about 10-14 days for me. They send a letter explaining why they withheld some of it.

Did you get an email about the direct deposit on February 9th? I received a similar notification on January 28th, but when I checked my account on February 3rd, there was no deposit. Called VA tax department on February 6th and they said part was offset and a check was mailed on February 4th. Just wondering what your timeline has been like?

What's probably happening is that you have some kind of state debt they're collecting on. Could be anything from unpaid tickets to old utility bills from a state agency. The electronic portion gets processed right away, but the paper check has to go through their explanation process. In my experience (sadly 😂), the check takes about 7-10 business days after the DD date. They have to print a notice explaining what they took and why, staple it to the check, and mail it the old-fashioned way.

If you need to find out exactly what's happening with your refund offset, calling the Virginia Tax Department directly is your best bet. I spent 3 days trying to get through their regular line with no luck (seriously, over 2 hours on hold each time). Finally used Claimyr (https://claimyr.com) to get a callback from them. Worth the fee to save literally hours of hold time. The agent explained exactly which agency had claimed part of my refund (turned out to be an old toll violation I had no idea about) and how to contact them to resolve it or dispute it if needed.

Is it possible this is just a system glitch? I'd be somewhat concerned that someone might be trying to redirect part of your refund. Virginia tax department probably wouldn't split a refund between DD and check unless there was a specific reason. Maybe double-check your tax return to make sure you didn't accidentally request part as a check? Just seems odd they'd do this without explanation.

This is actually a pretty standard procedure in Virginia (and most states). When they identify an outstanding debt, they're required by law to offset it against your refund. Wouldn't you rather know about a forgotten debt now than have it show up on a credit report later? The fact they're direct depositing part shows the system is working correctly - they're only withholding the amount needed to cover the debt plus maybe a small processing fee.

Based on what I've seen in previous years, VA paper checks are taking about 10-14 days to arrive. Last year mine was dated Feb 15 and arrived on Feb 26. The explanation letter is usually attached right to the check, so you'll find out what it was for when it arrives. If you're PCSing soon and need that money ASAP, you might want to call the VA Tax Dept and see if they can tell you over the phone what the offset was for - sometimes you can resolve it faster that way.

Hey Nadia! Military family here too, so I totally get the PCS stress. 🪖 I've been through this exact situation with VA twice now. The paper check usually takes 10-14 business days from when they process the DD portion. Since your DD was processed on 2/9, I'd expect the check sometime around 2/25-3/3. Pro tip: If you're really tight on timing for your PCS move, you can call the VA Tax Department and ask them to expedite the explanation letter via email while the check is still in transit. That way you'll at least know what the offset was for and can start working on resolving it if needed. The number is on their website under "Refund Inquiries." Good luck with your move! 🚛