What should I do about a tax refund taken for debt?
Your refund can be cut to pay old federal taxes, past due child support, other federal debts, state income tax or some state unemployment debts. A notice shows where the money went.
If the IRS used it for an old tax bill, the IRS mails you a notice. If another agency got it, the Bureau of the Fiscal Service sends one.
On a joint return, if your refund paid your spouse's debt, you may get your part back with Form 8379, injured spouse relief.
On a payment plan or in CNC status, the IRS still applies future refunds to your tax debt.
Key facts
- The offset notice and the agency named
- Whether the debt is yours or your spouse's
- Your original refund amount
- Whether you are on a payment plan
- The BFS line: 800-304-3107 if no notice came
Options that may help
File Form 8379 to get your share of a joint refund back.
Follow the notice to dispute with the agency that took it.
A plan stops some collection, but refunds still go to the debt.
Results depend on your situation. Not every case qualifies.
Common questions
How long does Form 8379 take?
Up to 8 weeks if filed alone, and longer if filed with your return.
Source: IRS: Injured spouse relief
Should I call the IRS about a state offset?
Only if the refund amount on the notice differs from your return. The IRS doesn't get the offset details.
Source: IRS: Topic 203, Reduced refund
Sources
General information, not tax or legal advice. You can contact the IRS yourself for free at irs.gov.