States offsetting federal refunds during COVID

[Nikkiwright525]

Does anyone know if Illinois is offsetting federal refunds this year for balances due on previous state taxes? I was told by an IL Dept of Revenue agent on a call that they were not but I know agents tend to tell you what you want to hear right now so I’m hoping someone knows by experience. Thanks!!!

[LenaH]

Your federal tax refund will be offset if you owe federal or state income taxes from past years, as well as debt such as child support or a past due federal student loan. The IRS will notify you by mail if your refund was offset by state tax debt. You can also look at your your IRS transcript to determine if it was garnished by Illinois at Get My Transcript.

For more information, please see Who Can Garnish an Income Tax Return?

[JohnW152]

Also, just as an FYI, if you’re filing a joint federal return, and only one of you owes the back state taxes, the other spouse may benefit by filing an Injured Spouse request.

For guidance in filing for injured spouse allocation, please see the TurboTax Help article How do I file Form 8379, Injured Spouse Allocation?.