Does TWC tax intercept take your entire refund for recent overpayment or just past due amounts?

They can and often do intercept your entire refund if you have an active overpayment case, but it depends on whether TWC has certified your debt to the Treasury Offset Program (TOP). If they've filed with TOP, you should have received a notice about 60 days before they can start intercepting. The good news is that they apply the entire amount they take to your overpayment balance, which will reduce your total debt faster. Since you've been making regular payments, you might want to call TWC directly to find out if your account has been sent to TOP yet.

they took ALL of mine last year. didnt matter that i was on a payment plan or anything. and they dont even tell you in advance, you just find out when u go to check wheres my refund and its been sent somewhere else. really messed me up

The Treasury Offset Program doesn't care if you have a payment plan or not - if your debt is certified for intercept, they can take up to 100% of your refund. I experienced this last year with a $5,200 overpayment. I WAS MAKING MY PAYMENTS EVERY MONTH and they STILL took my entire $3,780 tax refund!!! The only positive is that it knocked my balance down significantly, but it still felt like a punch to the gut since I was counting on that money. One thing to remember: if you file jointly with a spouse, your spouse can file an injured spouse claim (Form 8379) to get their portion of the refund protected. TWC can only take YOUR portion.

I had this problem and was freaking out! After waiting on hold with TWC for HOURS and getting nowhere, I used Claimyr (claimyr.com) to get through to a TWC agent in about 20 minutes. They have this video showing how it works: https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh. The agent was able to tell me exactly whether my account was flagged for tax intercept and what I could do about it. Might be worth it if you need definite answers before filing.

To follow up on my previous comment, here's some additional info that might help: 1. The tax intercept applies to the entire debt regardless of payment plan status, BUT making regular payments can sometimes prevent your account from being certified for offset in the first place. 2. If your refund is more than your remaining balance, you'll get the difference back, but it takes additional time (usually 2-3 weeks longer). 3. You can contact TWC to request a hardship waiver if the intercept would cause significant financial hardship. These aren't guaranteed but worth trying if you're in a tough situation. 4. After an intercept happens, you'll receive a notice from Treasury (not TWC) explaining the offset amount.

To answer your original question directly - they take the entire eligible refund up to the amount you owe, not just what would cover missed payments. I work with benefits issues as part of my job, and I see this confusion a lot. Having a payment plan in good standing with TWC is completely separate from the Treasury Offset Program. The good news is that if your refund is more than what you owe, you'll get back the difference, though it takes longer. If you haven't already, check your mail carefully - TOP requires a 60-day notice before offsetting your refund. If you received that notice, the clock is already ticking. If you're really concerned, you might want to adjust your W-4 to reduce withholding since you likely won't see that refund anyway.

My boyfriend's brother had this exact situation and they did take his whole refund even though he was only like 3 months into his payment plan. It suuuuuuuucks! But honestly it helped him get rid of the debt faster so maybe look at it that way?? Also did you know you can call TWC and request an offset bypass if you're experiencing financial hardship? Not sure if they'll approve it but might be worth a shot if you really need that refund money.

Why would you even file if you know they might take it? Maybe wait until you've paid off more of the balance? Just a thought

Thanks everyone for the advice and sharing your experiences. Sounds like I should definitely expect them to take my full refund based on what most of you have said. I'll try calling TWC to see if I can apply for that hardship waiver, though it sounds like those are hard to get approved. I just wish they'd be more transparent about the whole process instead of making it so confusing. I've been responsible about making my payments, so it feels unfair that they'll still take my whole refund. But I guess looking at the bright side - at least it'll knock down my balance faster. I'll update here after I file to let everyone know what happened in case it helps someone else.

I went through this exact situation two years ago and can share what happened in my case. I had a $3,800 overpayment and was making regular monthly payments of $150. Despite being current on my payment plan, TWC still intercepted my entire $2,100 tax refund through the Treasury Offset Program. The key thing to understand is that the payment plan you have with TWC is separate from the federal tax intercept program. Once your debt gets certified to TOP (which you got notice of in December), they can take your full refund regardless of your payment status with TWC. Here's what I learned: Call TWC and ask specifically if your account has been "certified for Treasury offset" and when that certification occurred. Sometimes there's a small window where you can request removal from the program, but it's rare and usually only for extreme hardship cases. The silver lining? That intercepted refund will be applied directly to your principal balance, so you'll save on interest and pay it off much faster than the monthly payment plan. It sucks in the moment, but it actually helped me get debt-free sooner.

I'm going through something similar right now - have a $2,800 overpayment from last summer and have been religiously making my $125 monthly payments since August. Got the TOP notice in November and filed my taxes last week, so now I'm just waiting to see what happens. From everything I've researched and heard from others, it really seems like once you're in the Treasury Offset Program system, they will take your entire refund up to the amount you owe, regardless of whether you're current on payments. The payment plan with TWC and the federal tax intercept are completely separate processes. One thing that might help - if you're expecting a large refund, you could potentially file an amended return or make estimated tax payments for next year to reduce your withholding. That way you're not giving the government an interest-free loan that TWC will just take anyway. Keep us posted on what happens! Even though it sucks, at least we're all in this together and can learn from each other's experiences.

I've been dealing with TWC overpayments for a few years now and unfortunately can confirm what others are saying - they will likely take your entire refund regardless of your payment plan status. I had a similar situation where I owed about $3,900 and was making consistent monthly payments of $200, but they still intercepted my full $2,650 refund last year. The thing that really helped me was calling TWC beforehand to get the exact status of my account in the Treasury Offset Program. They can tell you if your debt has already been certified for intercept and when it happened. In my case, knowing for certain helped me adjust my expectations and budget accordingly rather than hoping for the best. One small piece of advice - if you do get your refund intercepted, keep all your documentation and follow up with both TWC and the Treasury to make sure the payment was applied correctly to your account. I had to call twice because there was a delay in them updating my balance, which caused some confusion about my remaining debt amount.