Federal offset refers to the collection of past-due (delinquent) debts (for example, child support payments) that taxpayers owe to state and federal agencies. Is this what you are referring to? Please clarify. These are possibilities. Perhaps your 2020 Federal tax return was not offset because you owed no past due debts? Or you owed past due debts but they did not exceed a threshold pre-determined by the Department of the Treasury or the state or Federal agency. Although your income in 2020 was similar, your refund in 2021 may be larger because you qualified for a credit or deduction. Some 2020 features of the tax code were specifically exempt from offset. After doing this for many years I am convinced that sometimes people just 'slip through the cracks'.

Question

Why did my federal return get offset with taxes owed in 2021 but not in 2020? My income didn't change that much.

Forum|Forum|4 years ago
February 15, 2022
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JamesG1

Federal offset refers to the collection of past-due (delinquent) debts (for example, child support payments) that taxpayers owe to state and federal agencies. Is this what you are referring to? Please clarify.

These are possibilities.

Perhaps your 2020 Federal tax return was not offset because you owed no past due debts?
Or you owed past due debts but they did not exceed a threshold pre-determined by the Department of the Treasury or the state or Federal agency.
Although your income in 2020 was similar, your refund in 2021 may be larger because you qualified for a credit or deduction.
Some 2020 features of the tax code were specifically exempt from offset.
After doing this for many years I am convinced that sometimes people just 'slip through the cracks'.

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