Unemployment Tax Break with Student Loan Debt

Forum|Forum|4 years ago
May 15, 2021
1 reply
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So I filed earlier this year and got $42 back as my federal refund, of course I did this before the new bill went into effect. I owe student loan debt (owned by federal government), and it was being garnished before COVID started. I know the federal tax refunds were not being garnished, however I'm now waiting for my unemployment tax break refund. I just looked at the IRS and they said that 'the refunds are also subject to normal offset rules', does that mean I'm not getting my unemployment refund? I thought that garnishment don't start back up until September.

Just a bit confused on what I'm supposed to be expecting. Any help would really be appreciated!

Student Loans

xmasbaby0

Employee

https://www.irs.gov/newsroom/irs-begins-correcting-tax-returns-for-unemployment-compensation-income-exclusion-periodic-payments-to-be-made-may-through-summer

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

maddiefann94Author

I read that already, I didn't know what offset meant, that's why I'm posting here. Does it mean I'm not getting my refund back? Or am I?

xmasbaby0

Employee

"Offset" means they take a refund to pay a debt.

https://www.irs.gov/uac/tax-refund-offsets-pay-unpaid-debts

https://ttlc.intuit.com/community/refunds/help/what-is-a-refund-offset/00/26301

Reduced Refund https://www.irs.gov/taxtopics/tc203

NOTE: You can contact the IRS Treasury Offset Program Call Center at 1-800-304-3107 to ask if they have an offset for you on file. TurboTax would not have that information.

https://turbotax.intuit.com/tax-tips/tax-payments/who-can-garnish-an-income-tax-refund/L7cPPzDyc