Short answer: if you owe a past-due debt such as child support or a debt to a federal agency, your federal tax refund can be reduced or taken to pay it. This is called an offset, and the Treasury Offset Program does it. You get a notice that shows your original refund, the amount taken and the agency that got it. Questions and disputes go to that agency, not to the IRS or the Treasury Offset Program. If you filed a joint return and the debt is only your spouse’s, you can ask for your share back with Form 8379. This is general information, not legal or financial advice.
What a tax refund offset is
The Treasury’s Fiscal Service says the Treasury Offset Program collects past-due debts, such as child support, that people owe to government agencies, and that when a debt matches a federal payment such as a tax refund, it “withholds (offsets) money to pay the delinquent debt” (Fiscal Service, last updated March 19, 2026, read October 30, 2026). The IRS lists these debts that can reduce a refund (IRS Tax Topic 203, read October 30, 2026):
- Past-due child support.
- Federal agency non-tax debts. The Fiscal Service gives a delinquent debt for a federal loan as an example (Fiscal Service).
- Income tax owed to the government where you live.
- Certain unemployment compensation debts owed where you live.
The IRS also says a refund can be reduced by an adjustment to your return, such as a math error, a credit you did not qualify for, or federal tax you owe for a prior year. That is a different process: the IRS mails you its own notice for an adjustment (IRS).
The order the law sets
Under 26 U.S.C. 6402 (GovInfo, 2024 edition, read October 30, 2026), a refund is applied in this order:
| Order | What the refund pays | Where in the law |
|---|---|---|
| 1 | Federal tax you owe | 6402(a) |
| 2 | Past-due child support. The law says this reduction is applied “before any other reductions allowed by law” | 6402(c) |
| 3 | Past-due, legally enforceable debts to federal agencies. More than one such debt is paid “in the order in which such debts accrued” | 6402(d)(2) |
| 4 | Past-due income tax owed where you live, and covered unemployment compensation debts | 6402(e)(3) and (f)(2) |
Only what is left after these reductions is refunded to you. For income tax owed where you live, the law allows the offset only if the address on your federal return for that year is inside the area of the government asking for it (6402(e)(2)).
The notice before an offset
A federal agency cannot send a debt for tax refund offset until it has notified you, given you “at least 60 days to present evidence that all or part of such debt is not past-due or not legally enforceable”, and considered that evidence (31 U.S.C. 3720A(b), GovInfo, 2024 edition). The Treasury rule adds that the agency must give you a chance to make a written agreement to repay, and that the debt must be at least $25 (31 CFR 285.2(d), eCFR, text up to date as of October 28, 2026). The Fiscal Service says the letter must tell you what the debt is for, how much you owe, that the agency intends to collect by taking money from a federal payment, and what your rights are (Fiscal Service FAQs, last updated March 6, 2026).
That 60-day window is the time to act. If you think the debt is wrong, send your evidence to the agency named in the letter before the deadline, and keep a copy.
The notice after an offset
The IRS says the Fiscal Service will mail you a notice that shows “the original refund amount, your offset amount, and the agency receiving the payment”, and that “the details of the offset aren’t provided to the IRS” (IRS). The Treasury rule says the notice also names a contact point at the agency for questions, and tells a spouse on a joint return how to ask for their share (31 CFR 285.2(e)(1)). If you did not get a notice, the IRS lists the Treasury Offset Program call center: 800-304-3107 (TTY/TDD 800-877-8339), Monday to Friday, 7:30 a.m. to 5 p.m. Central time.
The IRS says to contact it only if the refund amount on the notice differs from the refund on your return (IRS).
How to dispute an offset
The Fiscal Service says its staff “cannot discuss your debt with you, refund any amounts collected, or discuss payment options with you”, and sends you to the agency servicing the debt (Fiscal Service FAQs). The law points the same way: no court can stop or review the reduction itself, but this “does not preclude any legal, equitable, or administrative action” against the agency that was paid the money (26 U.S.C. 6402(g)). So:
- Read the notice and find the agency that received the money and its contact point.
- Ask that agency, in writing, for the records of the debt and how it figured the amount.
- Send your evidence if you already paid, the amount is wrong, or the debt is not yours. Follow the steps in the notice.
- Ask about a repayment agreement if you owe the debt, so the next refund is not taken too.
- If you do not know which agency referred the debt, call the Treasury Offset Program line at 800-304-3107.
The Fiscal Service says an offset can take two weeks or more to reach the agency owed (Fiscal Service FAQs), so allow for that before you ask the agency where the payment is.
If you filed jointly and the debt is your spouse’s
The IRS says you may be eligible for injured spouse relief if you filed a joint return, your refund was applied to your spouse’s overdue debts, and you were not responsible for the debt (IRS, page last reviewed or updated November 8, 2025, read October 30, 2026). You ask for it with Form 8379, Injured Spouse Allocation:
- Timing: file within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later (IRS).
- How: with your joint return, on paper or electronically, or by mail on its own after you get the offset notice. You file a new Form 8379 for each year you want a refund back.
- Processing: the instructions say about 14 weeks with a paper return, 11 weeks if filed electronically, and about 8 weeks when filed by itself after the return was processed (Instructions for Form 8379, revised November 2024; these pages may be out of date).
- Where community property law applies, the IRS divides the refund under that law (IRS).
Injured spouse relief is not innocent spouse relief. The instructions say: “Don’t file Form 8379 if you are claiming innocent spouse relief. Instead, file Form 8857.” Innocent spouse relief is about tax owed on a joint return, not about a spouse’s other debts. The Treasury rule says that when the IRS pays a spouse their share, the Fiscal Service takes that amount back from the agency that was paid (31 CFR 285.2(f)).
What an offset does to your refund, only for the math
This example is only for the math, and all figures are example figures. Your refund is $2,400.00.
| Example debt of $900.00 | Example debt of $3,000.00 | |
|---|---|---|
| Refund on your return | $2,400.00 | $2,400.00 |
| Taken by the offset | $900.00 | $2,400.00 |
| Paid to you | $1,500.00 | $0.00 |
| Debt still owed after the offset | $0.00 | $600.00 |
$2,400.00 - $900.00 = $1,500.00. In the second case the debt is larger than the refund, so the whole $2,400.00 goes to it and $3,000.00 - $2,400.00 = $600.00 is still owed. The Fiscal Service says it offsets a payment only up to the debt balance (Fiscal Service FAQs).
Other federal payments and related guides
The Fiscal Service lists other payments that can be offset, depending on the debt, including wages, federal retirement, and Social Security benefits “(except Supplemental Security Income)” (Fiscal Service FAQs). For a defaulted federal student loan, see federal student loan default: your options. For a VA benefit overpayment, see VA benefit debt repayment options. For wages taken for a private loan, see wage garnishment for an unpaid loan.
If you are thinking of borrowing against a refund that might be offset, read tax refund advance vs personal loan first, and ask the provider what happens if your refund comes in lower than expected.
Questions to ask the agency owed
- What is this debt for, when did it start, and how did you figure the amount?
- Where did you send the notice before referring it, and on what date?
- Can I set up a written repayment agreement, and will that stop future offsets?
- If I show the debt is paid or not mine, how and when will the offset amount be returned?
Checklist
- Read the offset notice: original refund, amount taken, agency paid.
- Contact the agency owed, not the IRS, to question or dispute the debt.
- Act inside the 60 days on any letter that warns of an offset.
- Joint return, spouse’s debt: Form 8379, within the time limits.
- No notice? Treasury Offset Program line, 800-304-3107.
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Sources
- IRS: Reduced refund (Tax Topic 203, page last reviewed or updated June 1, 2026)
- Treasury Fiscal Service: What is the Treasury Offset Program? (last updated March 19, 2026)
- Treasury Fiscal Service: Frequently Asked Questions for Debtors in the Treasury Offset Program (last updated March 6, 2026)
- GovInfo: 26 U.S.C. 6402, Authority to make credits or refunds, 2024 edition
- GovInfo: 31 U.S.C. 3720A, Reduction of tax refund by amount of debt, 2024 edition
- eCFR: 31 CFR 285.2, Offset of tax refund payments to collect past-due, legally enforceable nontax debt, current text up to date as of October 28, 2026
- IRS: Injured spouse relief (page last reviewed or updated November 8, 2025)
- IRS: Instructions for Form 8379, Injured Spouse Allocation (revised November 2024)
Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.