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Expert Alumni

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

Yes, the IRS can take your state refund (Under the State Refund Levy Program), and apply it to any past due debts.

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New Member

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

Well I know my federal was garnished for the exact amount of child support I owed in arrears and then I got a letter from New Jersey State Treasury with the same amount garnished for the same exact thing so they both took the same amount amount for arrears so one of them owes me that money back because I'm paid up as far as child support now that they garnished it

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Expert Alumni

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

Please contact your State Department of Revenue directly for an explanation. 

How do I contact my state Department of Revenue? - Community

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New Member

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

Well, let me just say tht not sure tht is true I found out last year I owe federal taxes (not sure why) they kept my federal and state last year... This year I filed both and have not received either one... Can you answer that for me? Please.. 

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Expert Alumni

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

The Treasury Offset Program (TOP) is administered by the United States Department of Treasury’s Financial Management Service (FMS). It allows federal and state government agencies to collect outstanding debts owed to them by garnishing, or offsetting, your debt with your tax refund.  Who Can Garnish an Income Tax Refund?

 

If the government or state made a correction to your tax return, resulting in a lower than anticipated refund, you'll get an official explanatory letter when this happens.

 

Please see the TurboTax FAQ below, for reasons your refund may have been less than expected: Why is my direct-deposited refund or check lower than the amount in TurboTax?

You can go to this link Topic No. 203 Reduced Refund there is a phone number you can call to see if there was a refund offset.

 

If this is putting you into financial hardship, please see this link:Taxpayer Advocate Service

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New Member

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

That's not true they will take it

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Level 15

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

it works both ways. The IRS can take a state refund and the state can take a federal refund. 

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Level 4

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

The original answer is correct if the question was "can the federal refund pay the state balance due  or the reverse on a filed return " which is a big no.  Some folks think that a refund on one return will automatically pay the balance due of the other return for the same tax year and fail to pay the balance due then get notices that they did not pay and now owe penalties and interest.   However  once a return is  filed  then a state refund can be grabbed by the IRS to pay a prior year debt and vise versa. 

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