What is an offset?

A refund offset is a process where the Internal Revenue Service (IRS) can use all or part of a taxpayer's federal income tax refund to offset past-due government debts. The amount of the offset will depend on the amount of the refund and the amount of debt owed. If the taxpayer's refund is greater than the amount of the debt, the taxpayer will receive the remaining amount of the refund.

Why would my refund be offset?

Refunds can be offset for several reasons. Generally, an offset occurs when the IRS applies all or part of your tax refund to pay off a debt you owe.

Here is a list of the most common debts that may cause your tax refund to be offset:

• Past-due federal tax debt

• State income tax

• Child support

• Spousal support (Alimony)

• Federal nontax debt (student loans)

• Overpayment of benefits like Social Security or unemployment

• Or other debts that are reported to the IRS

If any of these situations apply, the refund will be taken to fulfill the obligation.

How do I find out if my refund will be offset?

If you are unsure if you owe a debt, contact the Treasury Department's Bureau of the Fiscal Service (BFS).

The toll-free number for the Treasury Offset Program (TOP) Hotline is 800-304-3107 (800-877-8339 for TTY/TDD help).

Please note that the hotline is open Monday through Friday from 8:00 a.m. to 5:00 p.m. Eastern Time.

You will need to provide you full social security number in order for The Hotline to answer questions about your specific debt, such as how much is due and who to contact for more information.

The Hotline also provides general information about the TOP program, including how to apply for a tax offset or debt offset and how to dispute a debt.

You can also visit the TOP website for more information and resources at https://www.fms.treas.gov/debt/debt_top.html.

How do I stop an offset?

One way to stop your refund from being offset is to contact the agency or creditor that is claiming your refund.

You can explain your situation and see if they are willing to work with you to resolve the debt without taking your refund. You might also be able to work out a payment plan or find other ways to settle the debt.

Additionally, you can check with your state's department of revenue or the IRS to make sure there are no other debts or liabilities that could be taken from your refund.

Finally, make sure that all of your state and federal taxes are up-to-date to avoid any further problems.

I've received my refund and it's less than I expected, now what?

It's always a good idea to use your tax refund in a way that will benefit you in the long run.

Many people use their tax refund to pay off debt, save for a rainy day, invest, or make a large purchase like a car or home renovation so it can be disappointing when you don't receive the amount you were anticipating.

If you've received your refund and it is less than you expected, you can contact the Internal Revenue Service (IRS) directly to discuss your specific situation.

The best way to contact the IRS is to call the IRS Customer Service line at 800-829-1040. They can help answer any questions you might have about taxes or other issues related to the IRS.

You can also visit the IRS website at www.irs.gov for more information.