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Level 1

If I owe the irs money will they take my state return also?

 
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Level 1

If I owe the irs money will they take my state return also?

No.  Federal income taxes and State income taxes are totally separate.  State income taxes owed cannot be paid with a federal tax refund.  And Federal income taxes owed cannot be paid by a State income tax refund.

And Federal income taxes owed cannot be paid by a State income tax refund.

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11 Replies
Level 1

If I owe the irs money will they take my state return also?

No.  Federal income taxes and State income taxes are totally separate.  State income taxes owed cannot be paid with a federal tax refund.  And Federal income taxes owed cannot be paid by a State income tax refund.

And Federal income taxes owed cannot be paid by a State income tax refund.

View solution in original post

Level 1

If I owe the irs money will they take my state return also?

This is total bad information. I owed Federal Taxes and the IRS took my state return. This answer is a false hope.
Level 1

If I owe the irs money will they take my state return also?

This is incorrect info. The IRS took my state refund this year. This is what it shows on NYS refund status website "Our records indicate your refund has been applied to one or more outstanding liabilities. If both your federal and state refunds were offset, it may take up to 60 days to receive a refund of any overpayment.Our records indicate your refund has been applied to an outstanding Internal Revenue Service liability. For further information on this liability call the IRS at ....." So you are giving incorrect info. You might want to recheck where you are getting this info from. This is directly from the IRS's website <a rel="nofollow" target="_blank" href="https://www.irs.gov/businesses/small-businesses-self-employed/federal-and-state-levy-programs">https...>
Level 1

If I owe the irs money will they take my state return also?

This is incorrect info. The IRS took my state refund this year. This is what it shows on NYS refund status website "Our records indicate your refund has been applied to one or more outstanding liabilities. If both your federal and state refunds were offset, it may take up to 60 days to receive a refund of any overpayment.Our records indicate your refund has been applied to an outstanding Internal Revenue Service liability. For further information on this liability call the IRS at ....." So you are giving incorrect info. You might want to recheck where you are getting this info from. This is directly from the IRS's website <a rel="nofollow" target="_blank" href="https://www.irs.gov/businesses/small-businesses-self-employed/federal-and-state-levy-programs">https...>
Level 1

If I owe the irs money will they take my state return also?

I hear you talking with confidence and authority, but you are wrong. When you owe federal taxes and are getting a state refund, and both returns are filed at the same time, the feds WILL apply your state refund to your federal bill.
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Level 1

If I owe the irs money will they take my state return also?

FALSE! I owed the IRS, They took money from my FED refund to cover it AND the CA STATE sent them the money too out on my state refund. Now I am fighting to get the difference back! I paid the bill twice!
Level 1

If I owe the irs money will they take my state return also?

Yes, I thought the same thing, but after calling the IRS they can and did take my state refund as well.
Level 1

If I owe the irs money will they take my state return also?

Totally false. I owed 2300 to federal for an audit 2 years ago. My MA state refund was just taken to offset federal debt. They did it last year too and I’m audited again.
Level 1

If I owe the irs money will they take my state return also?

The IRS took the state I was owed from my federal.  So that's a lie...it was just recently taken from my account.  I paid state 2 times.  Hoe can I get my money back
Level 1

If I owe the irs money will they take my state return also?

The information is not incorrect, just not worded correctly. TurboTax cannot apply your refund to the other entity. The IRS, however, can offset for this amount.
Level 20

If I owe the irs money will they take my state return also?

@kagamihaven  You are correct. It is worded badly.  Also, TT shows you the net effect of Federal and state for the same tax year, and users sometimes misread those numbers.