If I owe the IRS? can they take my state tax return

Forum|Forum|7 years ago
June 7, 2019
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Best answer by DavidD66

Yes. It's called a Tax Offset. If you owe money because of certain delinquent debts, the IRS or the Department of Treasury's Financial Management Service (FMS), which issues IRS tax refunds, can offset or reduce your federal tax refund or withhold the entire amount to satisfy the debt.

If you owe federal or state income taxes your refund will be offset to pay those taxes. If you had other debt such as child support or student loan debt that was submitted for offset, FMS will take as much of your refund as is needed to pay off the debt, and send it to the agency authorized to collect the debt. Any portion of your refund remaining after an offset will be refunded to you.

DavidD66Answer

Level 15

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stephenmoore80

Level 2

Is there a form I need to fill out in order to make sure they take my state taxes? Or will it just happen?

Jennlp24

Level 2

Did this change in the middle of 2019? I had my taxes done in Feb of 2019 and even though I owed money to federal, I still got a few dollars back from state.

JohnW152

Level 15

No, this policy hasn't changed -- the IRS can still levy your state tax refund.

Under the State Income Tax Levy Program, the IRS is allowed to take your state tax refund to satisfy your federal income tax debt.

Bear in mind that, when levies such as this occur, the IRS is basing its action on the information provided by the state. It's possible that the state information that it relied on was incorrect.

For more information on IRS levies of state refunds, please see Federal and State Levy Programs on the IRS website.

Main_will

Level 2

Hello I Just Filed My Taxes A Few Days Ago And It Says I Owe 35$ In State Taxes But They Was Asking Me When Will I Pay It But I Have A Federal Refund Of 713$ Which Is Now 678$ Because They Took $35 Dollars Which Makes My Refund 678$ So Do I Still Have To Pay 35$ Again If They Took It Out My Federal Taxes Themselves