If I owe federal taxes, do they automatically take it from my state return refund? Thank you.

[DoninGA · Accepted solution]

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.

[DoninGA]

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

[jbaum2]

Thank you.  I did my taxes via Turbo Tax last night and I am getting $490.00 from state, but I owe $192.00 to Federal.  The website says my refund is $298.00.  This is the exact amount if you subtract 192 from 490.  Why is that?

[jbaum2]

Thank you.  I did my taxes via Turbo Tax last night and I am getting $490.00 from state, but I owe $192.00 to Federal.  The website says my refund is $298.00.  This is the exact amount if you subtract 192 from 490.  Why is that?

[DoninGA]

That is just for your information.  You have to pay the federal taxes owed either by check or money order with a printed payment voucher, Form 1040-V, or a direct debit from your bank or saving account.  Or by credit card using the IRS website.

[jbaum2]

Thank you.  I did my taxes via Turbo Tax last night and I am getting $490.00 from state, but I owe $192.00 to Federal.  The website says my refund is $298.00.  This is the exact amount if you subtract 192 from 490.  Why is that?

[jbaum2]

Perfect.  Thank you.  If I want to pay with my debit card should I do it through the IRS website?  What is the IRS websites URL? Will the IRS send me my state refund if I don't pay my federal right away?  I would prefer getting the state refund first, then paying what is owed to federal.

[DoninGA]

The TurboTax program should have given you the options on how to pay the federal income taxes owed before you e-filed your tax return.  The state refund is not sent by the IRS, but by your state tax agency.
The federal income taxes owed must be paid on or before April 15, 2015 so you do not incur a late payment penalty.
The IRS website for payments on federal taxes owed is here - <a href="http://www.irs.gov/Payments" rel="nofollow" target="_blank">http://www.irs.gov/Payments</a>

[jbaum2]

Thank you for all of your help.

[downhill1]

what if you aren't sure if you are going to get your state refund before April 15th to pay your federal taxes?

[DoninGA]

@downhill1 - You should pay the federal taxes owed prior to April 15 using the payment options at this IRS website - <a href="http://www.irs.gov/Payments" rel="nofollow" target="_blank">http://www.irs.gov/Payments</a>

[kishasample]

The information given is incorrect.  The federal government can and will take your state refund.

[xmasbaby0]

You are posting to a year old thread, and are misunderstanding what the topic was.  The person posting the question wanted to know if their current federal tax due could be paid with their state refund, and the answer was no.  What you must be referring to is that the IRS can seize a state refund for BACK taxes owed.  That is a different situation, and not what this thread was about.

[cherylandfrank]

Actually the state of West Virginia will take it from your Federal refund, if you own your own home or have a mortgage.  However, it will show on your credit report as a Lien against your home.  The only way to get it off your credit, is to call your state treasury and have them send you a report that it was indeed paid in full.  You then have to send this report to all 3 credit agencies to have it removed of your credit report.  You then have to send the report to your local court house in the personal property department, because the Dept. of Treasury doesn't update all these issues for awhile, making it your responsibility.  Unfortunately, I learned this the hard way.  It is not worth being on your credit report for many years and it is NOT worth the hassle getting the lien removed.