I had state taxes owed taken out twice - once deducted from my federal income tax return and again from my savings bank account. How do I fix this?

[Daredevil]

Stop saying this is impossible because it is ABSOLUTELY POSSIBLE!! I spent ALL DAY TODAY on the phone with the department of revenue as well as the irs! Our FEDERAL Refund (not including state) was 9800. PLUS we were to be issued a refund from STATE for 1099!! The DRS modified my STATE refund claiming I owe taxes from the previous year, yet last year I received a letter from the IRS claiming, I OWED STATE TAXES, and they were deducting the amount owed from my federal return! So instead of getting back my full federal return I got back MINUS what was owed for state. Then they MODIFIED my state as well and claimed it TOO was for owing state tax! I HAVE LETTERS FROM BOTH THE IRS AND THE DRS THAT BOTH CLAIM THEY MODIFIED EACH TAX FOR TAXES THAT WERE OWED FROM THE PREVIOUS YEAR!! so STOP saying “it is impossible” because I have the PROOF here in front of me that my refund was deducted from BOTH my federal payment as well as my state payment!! I have letters showing my payments were modified to deduct last years payment! So YES the irs absolutely DOES take money for past state taxes and even on theIRS website it says they do!! So DO NOT LIE and say “it’s absolutely impossible” because that is a BOLD FACE LIE!!

[Daredevil]

@xmasbaby0 to say state taxes cannot be deducted from your federal return is a COMPLETE LIE!! I have letters from the IRS and DRS stating my refunds were modified to deduct my state tax payment! I also as to the phone for over an hour for them to tell me the same thing! So stop spreading LIES and saying it’s impossible because obviously, we have had our taxes modified to pay our state taxes! And I have the letters for proof!!

[DoninGA]

Taxes owed for prior tax years can be deducted from current year federal and state tax refunds.

The point is that current year taxes owed cannot be paid from current year tax refunds.

[VolvoGirl]

Your situation is different than having a current year tax due deducted from the other refund.  Turbo Tax can't do that.  Turbo Tax doesn't get involved with paying a tax due.  They only send your bank info so the IRS or state  can take it out of your bank account.

It sounds like the state put a lien on any federal refunds you get to pay a past year tax due.  Or the other way around.  They can always take any past  tax due you owe out of future refunds.  But you can't have a federal or state tax due automatically paid from the other Refund.  See,  Can I pay my state taxes from my federal refund?

[xmasbaby0]

@Daredevil You are confusing two very different situations.   You are referring to a situation in which you owed BACK taxes which caused your refunds to be seized to pay the back tax you owed.  If you owed back taxes, delinquent child support, etc. your federal and/or state refunds could be seized to pay those unpaid debts.  TurboTax never knows if you have unpaid taxes or if you owe child support, etc.   The IRS or state have the power to take your refunds if you owe such debts.

 IRS Treasury Offset Program Call Center at 1-800-304-3107

 https://www.irs.gov/uac/tax-refund-offsets-pay-unpaid-debts

https://ttlc.intuit.com/community/refunds/help/what-is-a-refund-offset/00/26301

Reduced Refund      https://www.irs.gov/taxtopics/tc203

 NOTE: You can contact the IRS Treasury Offset Program Call Center at 1-800-304-3107 to ask if they have an offset for you on file. TurboTax would not have that information.

https://turbotax.intuit.com/tax-tips/tax-payments/who-can-garnish-an-income-tax-refund/L7cPPzDyc

That is not the same thing as using a CURRENT refund to pay a CURRENT amount of tax due.   That simply does not happen.   

The “summary” given to you by TurboTax must have confused you.  That summary just nets out the difference between a refund you are getting and an amount you owe.   Or it adds two refunds or tax “due” amounts together.

The federal and state treasuries are completely separate from each other.  

Your state tax due cannot be paid from a federal refund.

And….your federal tax due cannot be paid from a state refund.  

Neither refund can be used to pay the amount due to the other one.

If you owe tax due, you have to pay it yourself by the filing deadline on April 15, 2024.

 If you have federal tax due you can pay by mailing your payment with the 1040V voucher, (which has the address printed on it, having the payment taken out of a designated bank account, or you can pay directly on the IRS website. 

https://www.irs.gov/payments

https://ttlc.intuit.com/community/tax-payments/help/how-can-i-pay-my-federal-taxes/00/26212

https://ttlc.intuit.com/community/tax-payments/help/how-do-i-pay-my-irs-tax-due-with-a-check-or-mone... 

To apply for a payment plan with the IRS

Apply Online for a Payment Plan

You must pay your state tax due using the state’s preferred method of receiving payment.  For most states that will be by making a payment to the state’s own tax website, or by mailing a check or money order.

https://ttlc.intuit.com/questions/1901670-how-do-i-contact-my-state-department-of-revenue

[VolvoGirl]

@Daredevil   Reading your post again i think what happened was the state reduced your state refund to pay a prior year tax due.  But the state also got it from your federal refund.  You should call the state and see if they got it twice.   Or where they applied the federal offset.  The payments must have been done around the same time.  Maybe if you wait a while the state will refund you for the double payment.  Or call the Treasury offset dept and see where they sent it.  

[Killianslaw22]

It's funny they say that this is not possible and yet I see all these replies that say it happened to them well I can confirm that it happened to me my federal tax refund shows I am receiving back exactly $833 less than what it was filed for and shows the $833 due to the state of California coincidentally and my bank account just told me that the state of California took 833 from my bank account so that would tell me that that's a double payment don't say it can't happen because it's happened to several people

[Zakiya86]

This just happened to me. What did you do to get the overpayment back and how long did it take?????

[Princessmarque]

Did you ever get an answer to your question? State and feds took 1500 dollars from me for state owed taxes they took it twice and I would like to know when they will refund the extra payment back to me 

[CatinaT1]

The IRS and State Governments have the ability to offset a refund to pay for certain past due debts.  You generally will receive a letter stating what the offset was for.   

The IRS provides a toll-free number, (800) 304-3107, to call for information about tax offsets.

[Zakiya86]

I never got an answer but from what i was told that i would have to wait until it shows up in their system which will take some time. I dont know how much time. When i get an update i will update you.