Will my offset from the department of education be refunded or, better yet, not taken at all?

Forum|Forum|6 years ago
March 27, 2020
1 reply
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I filed my taxs in March and on March 13, 2020 my federal return was accepted. Coincidentally this is the date that the DEPT. OF EDU. released the news that they would not be collecting any defaulted student loan offsets due to the pandemic.

Per multiple reports, the DOE is also refunding 1.8 billion in offsets that were collected.

My issue is my refund was accepted the day the news was announced, however on the IRS Check my Refund web tool, it says I am still having my Tax Refund offset by the Dept. Of Edu.

Can anyone explain to me whether or not I am misinterpreting what the DOE is doing? Im confused as to whether or not they are taking my refund.

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JohnW152

You can verify whether your refund has initially been applied to any student loan debt, and check its current status, by calling the Bureau of the Fiscal Service's Treasury Offset Program. You'll find the number in the IRS' Topic Number 203 - Reduced Refund.

According to the Consumer Financial Protection Bureau’s What you need to know about student loans and the coronavirus pandemic page,

“The Department of Education has stopped the collection of defaulted federally-owned student loans including garnishment of wages, the offset of tax refunds, and Social Security benefits. There is no additional action required from you for your federally-owned loans. For all other loans you may have, contact your servicer to find out about your options.”