Reimbursement Offsets

Reimbursement Offsets

Your income tax return may show you’re due a refund through the IRS. Nevertheless, in the event that you owe a tax that is federal from a previous income tax 12 months, or a debt to a different federal agency, or particular debts under state law, the IRS may keep (offset) some or all your valuable income tax reimbursement to cover the debt.

What forms of debts could be offset?

Past-due federal taxation;
State earnings taxation;
State unemployment settlement debts;
Son or daughter support;
Spousal support; and
Federal debt that is nontax like student education loans.

The IRS makes offsets for overdue taxes that are […] Read more