If an individual owes money to the federal government because of a delinquent debt, the Treasury Department can offset that individual’s federal payment or withhold the entire amount to satisfy the debt.
Worried about Offset
I will probably not get any of my refund. I was supposed to get around 7K this year, but I owe over 8K in student loan debt. I filed taxes tonight, and they were accepted within an hour or so. I called the offset line and it said that I had an offset by the department of education. I checked the website for myeddebt.ed.gov and it says over 8K.
My wife, who has more loan debt than me, has no offset.
It bothers me, because we needed this money to get many things caught up. We are a family of 4 with a third child on the way.
I NEVER got anything in the mail stating that they were going to offset this year. I tried to setup a payment arrangement about 6 months ago, but being as low income as we are I couldnt go through the proposed arrangement. We get collections calls all the time for my wife’s student loans, but not for mine.
I know I owe, and I would be happy to do an arrangement if we could afford it, but for right now we cannot afford to lose our refund.
Does anyone know how likely it is that they will take the whole refund? If there any chance that it can say there is a potential offset on the hotline but have nothing taken?