Offsets

[Gemmi]

I had an offset for some taxes I owed to NY state. When I called the IRS offset line, I was told I had an offset and to contact NYS taxation and finance. I got my DDD for tomorrow and on WMR I got tax topic 203. I assumed that the IRS would deduct the amount I owed and I would get my full NYS refund. Anyway, when I checked my NYS status it said that there was an adjustment to my refund. When I called NYS they said that they deducted what I owed from my state taxes. Is there any chance that I will receive my full Federal refund or do I have to wait for NYS to realize they double dipped and refund me? Has this happened to anyone else?

[Cynthia]

Gemmi – Based on my experience, when you owe an agency, they intercept your refund as an offset/payment- “which ever comes first”. If you say that your state refund has been “adjusted” it sounds like the agency have intercepted your state refund first. Even though your federal refund says something about an offset, keep in mind that your money goes through the Treasury first, and the treasury normally sends a check to the agency but if they see that it has been paid by your State refund, you should get your full Federal Refund. Again, the ” Which ever comes first” rule apply. I hope this helps. Let me know. Good luck!

[Author]

Replies