How to Check If Your Tax Refund Will Be Offset

The IRS will tell you before they take your refund, but you have to know where to look

The IRS sends a notice called a CP-05 or CP-05H if your refund is going to be offset to pay federal debt. This notice arrives by mail before the offset happens—usually four to six weeks before your refund is intercepted. The notice tells you what debt triggered the offset, how much will be taken, and which federal agency is collecting it. If you receive this notice, your refund will be offset unless you act to dispute the debt or request a hearing.

You can also check the status of your refund using the IRS's Where's My Refund tool on IRS.gov. If an offset is pending, the tool will show a status message indicating that your refund has been held or will be applied to a debt. The tool updates every 24 hours, so check it regularly once you file. If you do not receive a CP-05 notice and the tool shows no offset message, your refund should process normally.

Key Takeaways

The IRS sends a CP-05 or CP-05H notice in the mail before offsetting your refund, giving you time to respond or request a hearing.
The Where's My Refund tool on IRS.gov will display a message if your refund is being held for an offset, though not all offsets appear there when ready.
Federal debt that triggers an offset includes unpaid income taxes, student loans in default, and child support arrears sent to the Treasury Offset Program.
If you receive a CP-05 notice, you have the right to request a hearing with the IRS Office of Appeals within 60 days of the notice date.
State tax offsets work separately from federal offsets and are handled by your state tax agency, not the IRS.

What the CP-05 notice tells you

The CP-05 notice lists the federal agency collecting the debt, the type of debt (tax, student loan, child support), the amount being offset, and the date the offset will occur. Read this notice carefully because it contains the important date for requesting a hearing—typically 60 days from the notice date. If you miss this important date, you lose the right to challenge the offset before it happens.

The notice also explains that you can request a hearing with the IRS Office of Appeals if you believe the debt is not yours, has been paid, or if you have a hardship claim. A hardship claim means the offset would prevent you from meeting basic living expenses. The IRS does not automatically grant hardship requests, but filing one stops the offset temporarily while your case is reviewed.

How to use Where's My Refund to check offset status

Go to IRS.gov and select the Where's My Refund tool. Enter your Social Security number, filing status, and the exact refund amount from your tax return. The tool will show one of three statuses: your refund is being processed, your refund has been sent, or your refund has been held or offset.

If the tool shows that your refund has been held, it will usually include a message explaining why. This message may say your refund is being applied to a federal debt. However, the tool does not always display offset information when ready—some offsets do not show up until a few days before they occur. If you filed your return and have not received a CP-05 notice after four weeks, check the tool again. If the tool shows no offset message and you have not received a notice, contact the IRS at 1-800-829-1040 to confirm your refund status.

Debts that trigger federal refund offsets

The Treasury Offset Program (TOP) intercepts federal refunds to pay several types of federal debt. These include unpaid federal income taxes, defaulted federal student loans, unpaid state income taxes (collected by the federal government on behalf of the state), child support arrears, and certain other federal debts like overpaid unemployment benefits or federal employee debts.

The IRS does not offset refunds for private debts like credit cards, medical bills, or private student loans. If a private creditor is trying to collect from you, they must pursue a separate legal action and obtain a judgment—they cannot intercept your federal tax refund. If you receive a notice claiming a private debt triggered your offset, that notice is fraudulent and you should report it to the IRS at 1-800-829-1040.

What to do if you receive a CP-05 notice

Read the notice when ready and note the 60-day important date for requesting a hearing. If you believe the debt is incorrect, has been paid, or if the offset would create a hardship, you have three options: request a hearing with the IRS Office of Appeals, contact the federal agency listed on the notice to dispute the debt directly, or do nothing and let the offset occur.

To request a hearing, write a letter to the IRS Office of Appeals at the address shown on your notice. State your reason for disputing the offset—for example, "This debt was paid in full on [date]" or "This refund offset will prevent me from paying rent and utilities." Include copies of supporting documents such as payment receipts, proof of identity, or evidence that the debt belongs to someone else. Mail your request within 60 days of the notice date. The IRS will acknowledge your request and schedule a hearing, which may be conducted by phone or in writing.

State tax refund offsets work differently

If you owe a state income tax debt, your state tax agency can offset your state refund independently of the federal offset. State offsets are not handled by the IRS—your state tax department manages them. You will receive a notice from your state, not from the IRS, if a state offset is pending.

To check on a state offset, contact your state's tax department directly. Most states have online tools similar to the IRS's Where's My Refund, or you can call the phone number on your state tax notice. State offset procedures and appeal rights vary by state, so read your state notice carefully for the specific important date and process in your state.

Frequently Asked Questions

Can I stop a refund offset once the IRS sends the CP-05 notice?

Yes, if you request a hearing within 60 days of the notice date. The hearing request does not automatically stop the offset, but the IRS may delay it while your case is reviewed. If you claim hardship, the offset may be postponed. However, if you do nothing, the offset will proceed on the date listed in the notice.

What if the CP-05 notice lists a debt I don't recognize?

Request a hearing and explain in writing that the debt is not yours. Include any evidence that the debt belongs to someone else, such as an identity theft report or proof that you were not living in the state where the debt originated. The IRS will investigate your claim before offsetting your refund.

Will my refund be offset if I owe both federal and state taxes?

Possibly. The federal offset and state offset are separate processes. You may receive two notices—one from the IRS for federal debt and one from your state for state debt. Each can offset your respective refund independently. You have the right to request a hearing for each offset separately.

How long does it take to get a hearing decision on a CP-05 notice?

The IRS typically issues a decision within 30 to 60 days of receiving your hearing request, though complex cases may take longer. During this time, the offset is usually delayed. If the IRS denies your request, your refund will be offset after the decision is final.

Can I check my refund offset status without the CP-05 notice?

Yes, use the Where's My Refund tool on IRS.gov. However, the tool does not always show offset information when ready. If you suspect an offset but the tool shows no message, contact the IRS at 1-800-829-1040 to confirm. You should also receive the CP-05 notice in the mail within four to six weeks of filing if an offset is pending.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.