I have a student loan debt offset. Can the IRS take this debt out of my refund money, including the amount I receive for the Earned Income Credit (EIC)?
Yes. If you have student loan debt, the IRS can use all or part of your tax refund money to offset unpaid tax liabilities. This can include the Earned Income Credit (EIC).You will receive a notice, however, to let you know that your refund will be offset. The notice will show your original refund amount, your offset amount, the agency that the offset was paid to, and its address and telephone number. If you receive this notice and have questions, contact that agency directly.
Learn more about the tax benefits of college savings accounts like 529 plans and Coverdell ESAs with the experts at H&R Block.