Is There a Deduction/Benefit for Ceased Taxes?

[judgediatl2]

Ohio

Last year, I was forced to hand over my entire tax refund due an existing federal tax debt that I settled in offer in compromise (as one of the terms). They also changed the law right after that, to where this was no longer required. But that's besides the point.

Not receiving any refund last year was a huge hardship for my family. Is there something I can claim on my taxes this year, that will acknowledge this and provided some type of benefit for this year's refund?

 

[Zigner]

Ohio

Last year, I was forced to hand over my entire tax refund due an existing federal tax debt that I settled in offer in compromise (as one of the terms). They also changed the law right after that, to where this was no longer required. But that's besides the point.

Not receiving any refund last year was a huge hardship for my family. Is there something I can claim on my taxes this year, that will acknowledge this and provided some type of benefit for this year's refund?

Why should they?

ETA:
You already have a thread on this topic: https://forum.freeadvice.com/threads/is-getting-my-tax-return-back-hopeless.662737

ETA Again: And your question was answered:

• https://forum.freeadvice.com/threads/is-getting-my-tax-return-back-hopeless.662737/#post-3772357
• https://forum.freeadvice.com/threads/is-getting-my-tax-return-back-hopeless.662737/#post-3772425

 

[judgediatl2]

Why should they?

First of all, because money in my pocket will put more food on my kids plate (vs it being in the Government's till...who'd barley know it's there). And I didn't ask for it all back. I asked for a benefit or small deduction that would help my family in some measure. Not an unreasonable request, and one that a helpful tax attorney would explore (or at least consider more civilly).

You already have a thread on this topic: https://forum.freeadvice.com/threads/is-getting-my-tax-return-back-hopeless.662737

Wrong again. These are related subjects, completely different topics.

 

[Zigner]

First of all, because money in my pocket will put more food on my kids plate (vs it being in the Government's till...who'd barley know it's there). And I didn't ask for it all back. I asked for a benefit or small deduction that would help my family in some measure. Not an unreasonable request, and one that a helpful tax attorney would explore (or at least consider more civilly).




Wrong again. These are related subjects, completely different topics.

What a ray of sunshine you are...bless your heart.

 

[judgediatl2]

I am actually. You'd like me in real life. It's just when I'm post-Nazi to death, that's when I get a little...grumpy.

 

[Zigner]

I am actually. You'd like me in real life. It's just when I'm post-Nazi to death, that's when I get a little...grumpy.

Please keep your related questions in the same thread.
And this question was just about as closely related as they come...

 

[adjusterjack]

Not an unreasonable request, and one that a helpful tax attorney would explore (or at least consider more civilly).

@Taxing Matters is a tax attorney who participates here. He's very civil and patient. Stick around in case he has any comments.

 

[Zigner]

@Taxing Matters is a tax attorney who participates here. He's very civil and patient. Stick around in case he has any comments.

He's already commented - read the posts I linked to.

 

[LdiJ]

Ohio

Last year, I was forced to hand over my entire tax refund due an existing federal tax debt that I settled in offer in compromise (as one of the terms). They also changed the law right after that, to where this was no longer required. But that's besides the point.

Not receiving any refund last year was a huge hardship for my family. Is there something I can claim on my taxes this year, that will acknowledge this and provided some type of benefit for this year's refund?

I am a tax professional. You technically did receive your tax refund last year. It simply went to pay an outstanding federal debt that belonged to you. Unless the debt that it went to pay was something already deductible (ie student loan interest paid) then no, there is no deduction available to you for that. If it went to pay a prior tax debt, there is absolutely no deduction available. Your overpayment in one year simply went towards your underpayment in another year. It sounds like part of your debt was forgiven, and you should be grateful for that.

Please understand that a tax refund is never a given. Some people get a refund, some people end up owing. People with children often do get large refunds but eventually those children age out (and/or the parents start making alot more money) and then those parents discover quickly that large refunds are not the norm.

 

[doucar]

You can always lower the amount withheld from your paycheck, and not make an interest free loan to the government.

 

[LdiJ]

You can always lower the amount withheld from your paycheck, and not make an interest free loan to the government.

That only works for people who have a tax liability in the end. Many people with children have their tax refund coming from refundable credits. There is no way to arrange withholding to avoid a refund from refundable credits. It used to be possible to get Advance Earned Income Credit but that is a thing of the past.

Even someone making 60-80k with 3 or 4 children could have part of their refund coming from refundable credits.

 

[Taxing Matters]

Not receiving any refund last year was a huge hardship for my family. Is there something I can claim on my taxes this year, that will acknowledge this and provided some type of benefit for this year's refund?

Unfortunately the answer is no. You signed the OIC agreement which included the term that any refund you get for the year in which the OIC is approved gets applied as part of the OIC payment. If you got credit for the payment again on the current taxes you'd be getting a double benefit, and that is not how the OIC program is intended to work. That said, assuming all the other conditions of the agreement have been satisfied, you no longer have that old tax debt hanging over your head to worry about. But you do need to keep current with future federal taxes as set out in your OIC agreement. I realize that its tough when you were counting on that refund for other things, but you had a choice to make about the OIC and in the long run taking the OIC will likely prove to be good for you, despite the (hopefully temporary) cash crunch you may be experiencing now. I hope that the future will hold better things for you.

 

[judgediatl2]

Thanks! This is what I assumed, but I figured doing diligence and turning over every rock (just in case) couldn't hurt. I really appreciate (almost all) the help above! Some of you were very help, so thanks!

 

[Just Blue]

I am actually. You'd like me in real life. It's just when I'm post-Nazi to death, that's when I get a little...grumpy.

I'm curious. What does "post-Nazi to death" mean?

 

[Zigner]

I'm curious. What does "post-Nazi to death" mean?

The OP was complaining about me pointing out that the question(s) had already been addressed in another thread. You know...because I'm a Nazi I guess.