By Matt Durr
mlive.com
(TNS)
While millions of Americans are waiting for their tax refunds to hit their bank accounts, not everyone expecting a refund will receive the full amount. A program authorized through the Department of Treasury’s Bureau of the Fiscal Service (BFS) allows for the reduction of your tax refund if you owe certain debts.
The Treasury Offset Program is authorized by Congress and allows for the BFS to reduce your refund and use it to pay down the following debts:
- Past-due child support;
- Federal agency nontax debts;
- State income tax obligations; or
- Certain unemployment compensation debts owed to a state (generally, these are debts for (1) compensation paid due to fraud, or (2) contributions owing to a state fund that weren’t paid).
If your tax refund is subject to the reduction, you will receive a letter from the BFS. According to the IRS, the letter will reflect the original refund amount, your offset amount, the agency receiving the payment, and the address and telephone number of the agency. BFS will also notify the IRS of the amount taken once your refund date has passed.
Any money not used to pay down the debt will then be issued as a tax refund in the form of a check or direct deposit as directed on the original tax return.
If you are unsure if any of your debt has been submitted for a tax refund offset, you can contact the agency that you have debt with directly. You can also call the BFS call center to obtain a phone number and address for the agency you are in debt to.
You can reach the BFS call center at 1-800-304-3107 Monday through Friday 7:30 a.m. to 5 p.m. CST.
If you have jointly filed your tax return, you may be able to limit how much of the joint refund is reduced. The IRS says that if “you’re not responsible for debt that is subject to offset because it is owed by your spouse, you’re entitled to request your portion of the refund back from the IRS.”
You can request a portion of the refund by filing Form 8379, Injured Spouse Allocation.
For more information on how to file for Injured Spouse Allocation or about reductions to your tax refund, visit the IRS website.
©2025 Advance Local Media LLC. Visit mlive.com. Distributed by Tribune Content Agency LLC.
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