Check: When can the government keep your tax refund?

ATLANTA – The tax deadline has passed, and now many of us are waiting for the anticipation of a refund. But some only filed their declaration to feel frustrated. In fact, online claims agencies like the US Department of Education issue refunds.

So when isn’t your refund yours in cash and instead goes to the government? 11Liza Lucas d’Alive turned to a financial expert Jini thornton to verify.

“If you’re in default on federally guaranteed student loans, they’ll definitely take that repayment,” Thornton explained.

Wait. Before everyone with a college loan panics, it’s specific, according to Thornton.

“In cases where your loan is in default, no postponement,” she said. “Deferral means you have made arrangements. You can’t pay now for whatever reason, and you will make your payments later. You have arrangements with your lender.

It is different from the default status.

“By default, you are supposed to make payments,” Thornton said. “You haven’t made an agreement with your lender. Again, they will take this repayment and apply it to the balance on this loan. “

The withholding is known as the tax refund offset, or cash compensation, and that’s not the only reason your refund might be reduced or taken in full.

“The obvious is that you owe tax for the current year you file, or maybe a previous tax year,” Thornton said. “If you are behind on court-ordered child support, the IRS will certainly keep your refund.”

Additionally, Thornton said your refund could be kept if you owe another federal agency.

According to the Taxpayer Advocate Service (TAS), offsets may occur with respect to the following debts.

  • Federal tax in arrears;
  • State income tax;
  • State unemployment compensation debts;
  • Child support;
  • spousal support; and
  • Federal non-tax debt, such as student loans.

For federal tax offsets, you will receive a notice from the IRS, according to TAS. For all other shifts, the advice will come from BFS. Learn more about your rights to challenge the IRS here.

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