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Monies Applied to Pay Your Debt (Offsets)

  • Your refund has been applied to a balance that is owed to the State of Michigan and/or to a Third Party Garnishment.

  • An offset is when Michigan Department of Treasury intercepts your income tax refund or vendor payment, and applies it to a balance owed to the State of Michigan and/or to a Third Party Garnishment.

     

  • 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 to 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.

     

  • 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 wages. 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.

  • Yes. Refunds that are due to you are subject to offset and will be applied to your debt even if you are current on an approved installment agreement. This will continue until the debt is paid in full (including penalty and interest).

    Vendor payments are monies owed to you by the State of Michigan (e.g., payments for services performed such as child care or home health care) and are also subject to offset. If you are on an approved, current installment agreement AND reported the vendor income on a Collection Information Statement, the vendor payment will not be subject to offset. A Collection Information Statement may be obtained by contacting the area assigned to servicing your assessment (GC Services LP, Field Office, etc.)