Have no clue what to do about filing taxes... owe DFAS overpayment...

[hopeforus]

We are still preparing to file our Chapter 7 but I wanted to wait until I received my financial aid refund and our tax refund so that I could just pull our cash and not worry about those anymore. We can exempt it all using our unused homestead exemption.

Well my husband got his honorable discharge papers the other day. He owes for an overpayment (long story) and it had been coming out of his drill pay (which he hasn't gone to since like May). So we now owe the military about 10k. Hubby reminded me of this the other day and of the fact that we owe money to a government agency and that may mess up our tax refund. Esp now that he doesn't have pay to dock from anymore. We had to wait to file anyway because he can't seem to access his W2. He can't even get into his account and his password won't get sent. It's a mess. He may have to write a letter to even get his W2. I was considering just efiling without this W2 and amending as soon as we get it since it will still be before tax deadline. BUT... I have no idea what to do now.

I was reading on the DFAS debt collection page and it sounds as if they don't refer you to the federal offset people until it's 62 days after the day they mail you a debt letter. We haven't received one of these yet. So logic tells me that we shouldn't worry about them seizing our refund, but it still freaks me out because after spending as long in the military as we have... we know that logic doesn't matter

Would you worry about this? Would you just file asap and not worry about them seizing it since they DO say they send out a letter...

We do have 3 other judgments against us... but the IRS doesn't seize for credit card creditors right?

Thanks.

[hopeforus]

bummer. No experience with owing the military?

[ValleYum]

Call DebtMan and ask them. 800-827-0648

They will tell you if your 2010 income tax refund will remain intact and from past experience, no, it doesn't flag you for "attention".

[hopeforus]

Thanks!

I ended up finding out about the Treasury Offset Program automated phone number that tells you if your refund will be offset and so far no debts have been entered against either of our SSNs. I doubt it will turn up that way within the next week or so ... so I think we are safe for right now. I will have it direct deposited into my school bank account that was recently opened. I received my financial aid in there and took cash out daily and it went well. Almost done... almost done... just want to get this money and then will file and be on our way to really truly done

[ValleYum]

You should list that automated number for others to find when they read the thread at a later time.

[hopeforus]

Here it is
Treasury Offset Program Call Center: 1-800-304-3107 Press one for english or two for spanish and then you'll push 1 in order to enter your SSN

[tcreegan]

Hi hopeforus,

The account access being cut off....due to discharge? Maybe the W2 will be sent by mail....?

We do have 3 other judgments against us... but the IRS doesn't seize for credit card creditors right? ....yup, your tax refund is safe from them. ....be sure to include these in the BK and after the BK is over, go back to the court where the judgment was awarded and file a motion to vacate the judgment.

Well my husband got his honorable discharge papers the other day

Tell him congratulations; and I thank both of you for your service!

Tom in Colo

[hopeforus]

First, THANK YOU. We ended up losing our house courtesy of the Army Reserves and an honorable discharge was the least they could do for him at this point. Crazy story that involves him being injured and them not paying him during the time they wanted him to heal up and return to school. Horrible time. He was in for almost 16 years total though and it hurt him to get that discharge a bit. At least it's honorable and he can still do something with them again sometime

Nope... when he called DFAS they said that he should have access and they requested a new password for him even. But he never gets it. He requested again yesterday. nothing. So looks like we have to send a written request in for a hard copy. They won't send hard copies automatically if you are set up to receive it in mypay. Would be nice if he could get INTO mypay!


I did file today and will amend as soon as we get the W2 though. Just who knows how long that could have taken. It won't change much at all. I already input his last LES info to see and it's not much.

I called the number to find out if we had any debts submitted to be offset as well and nothing. So just to get through this next week... I'll breathe a huge sigh when I see the money in my bank account...

Hi hopeforus,

The account access being cut off....due to discharge? Maybe the W2 will be sent by mail....?

We do have 3 other judgments against us... but the IRS doesn't seize for credit card creditors right? ....yup, your tax refund is safe from them. ....be sure to include these in the BK and after the BK is over, go back to the court where the judgment was awarded and file a motion to vacate the judgment.

Well my husband got his honorable discharge papers the other day

Tell him congratulations; and I thank both of you for your service!

Tom in Colo