For anyone getting a refund, tax season is the best time of year. But for those who have defaulted on their federal student loans, their potential joy can be seized by the IRS to pay down the federal debt. This is called a tax offset.

It may not currently be tax season, but it’s never too early to start preparing to secure that refund. Specifically, if you have federal student loans that you’re behind on, it’s in your best interest to get in good standing before the Department of Education decides to collect your tax refund.

If you’re worried about the IRS taking your tax refund, you’re in the right place. And the Department of Education announced they restarted collection activity, and they will take your tax refund in 2026 if you're in default.