Will the offset payment count toward my monthly Installment Agreement payment?

No. Michigan statute allows for the offset of an income tax refund or credit to any assessed liability until the account is paid in full even if you are on an approved installment agreement. The Installment Agreement form also states that any refunds (income tax refunds, lottery winnings, vendor payments) due you from the State of Michigan will be applied as an additional payment on your debt. Your regular monthly payment must still be made to avoid defaulting on your installment agreement which could lead to enforcement action.

An account with an approved installment agreement will avoid enforcement actions such as levies on bank accounts and/or wage. Enforcement actions will not be taken as long as the installment agreement is not in default. Any delinquent account may be offset by Michigan Department of Treasury.

NOTE: A lien may still be placed while on an installment agreement.