Can federal take your refund if you owe state

[bluedeb · Accepted solution]

Yes, if the IRS has been notified.

The Department of Treasury's Bureau of Fiscal Service (BFS), which issues IRS tax refunds, has been authorized by Congress to conduct the Treasury Offset Program (TOP). Through this program, your refund or overpayment may be reduced by BFS and offset to pay:

• Past-due child support;
• Federal agency non-tax debts;
• State income tax obligations; or
• Certain unemployment compensation debts owed to a state. (Generally, these are debts for (1) compensation that was paid due to fraud, or (2) for contributions owing to a state fund that were not paid due to fraud).

To determine if a debt is owed (other than federal tax), and whether an offset will occur, contact BFS' TOP call center at 800-304-3107 (for TTY/TDD help, call or 866-297-0517). 

[jbtorrico]

If you owe back taxes to a state, that state may be able to take or garnish your Federal refund.