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Okay, this is a little lengthy, so bear with me. I filed an IS form electronically with my tax return this year. My husband owes student loan/unemployment. He has been out of work for close to a year and returned to work in Nov. 2014, so I have been the breadwinner. We knew he had offsets, so I filed the IS. My return was received and accepted (federally) on 2/8/14. So, flash forward to this week. I had been checking my WMR (no movement in weeks) and my transcripts. I had 2 846 codes with different refund amounts. On 3/17/15, 1/2 of my refund was posted to my checking account. I gave it until Thursday, to which the other half had yet to post. I contacted the IRS and was told by a rep that the money had been sent to the bank on 3/18/15. I contacted my bank and was told that it might not post until 3/23/15. So today (3/21/15) I received a letter from the US Dept of Treasury stated that the remainder of the refund had been offset toward my husband’s student loans. I am confused! I have already filed the IS form with my taxes, I was told by the IRS rep that my refund was sent out on the 18th. The IRS rep never mentioned that the amount had been used for the offset. II checked my transcripts today and I have an 898 code – offset. The letter is dated 3/18/15. Of course, this is all happening on a Saturday, so I have to deal with this on Monday. My husband only worked 2 months out of the entire year last year and possibly paid in 400.00 in taxes. Has anyone ever been in a similar situation? My husband is paying on his loans now that he is working. I know that I will have a long day of calling ahead of me on Monday. I am just worried that I won’t be getting the remainder of my refund back.
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Your refund has been applied to a past due obligation such as child support, another federal agency debt, or state income tax. The Financial Management Service, who issues IRS refunds, will send you a notice informing you of the reduction.
If you do not receive the notice within two weeks:
contact the Financial Management Service at 800-304-3107.
Please read the following information related to your tax situation:
Tax Topic 203, Refund Offsets for unpaid child support and certain federal, state, and unemployment compensation debts: my debts have not been reduced i need to know whey
IRS I hadn’t received my refund by 4/6/2015to call the IRS again.
So, I checked my transcripts and this is what I have:
898 Refund applied to non-IRS debt: xxxx.xx 03-30-2015 0.00
766 Reversal of refund applied to non-IRS debt 0-15-2015 -0000.00
290 Additional Tax assessed 20151205 04-13-2014 0.00
971 Noticed Issued 04-12-2015 0.00 -
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I forgot to mention that if you separately you will lose an exemption too, which will affect your taxable income by $3,950.
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Do you live in a community property state? If you do I believe that the refund get’s split between the two of you, regardless of who made the most income. I do live in a community property state, so I’m not 100% sure. My other question is have you considered filing, married filing separately? You lose a little money on standard deduction, but it’s not a lot. I don’t file separately because I can’t claim the education credit if I do. If you are claiming the earned income credit,you can’t file separately either, you have to file head of household, but if neither of these apply to your situation you might want consider it filing separately in the future. You can always amend your tax return and file the amended return with married filing separately to get your share of the refund back.
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