State tax

Forum|Forum|6 years ago
February 8, 2020
1 reply
0 views

Can your state you reside in take from your federal tax return if you owe the state money?

JotikaT2

Employee Tax Expert

It sounds like you want to know if the state can take money from the IRS refund for payments due to the state.

If so, the answer is no.

Both entities are independent of each other.

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laurenhatfield26

Level 2

I have a queation if i owe social security money can they take my state and my federal income taxes

ColeenD3

Level 15

@laurenhatfield26

Possibly. Does the money you owe fall into the category below?

The Department of Treasury issues IRS tax refunds and Congress authorizes BFS to conduct the Treasury Offset Program (TOP). Through the TOP program, BFS may reduce your refund (overpayment) and offset it to pay:

Past-due child support;
Federal agency non-tax debts;
State income tax obligations; or
Certain unemployment compensation debts owed to a state (generally, these are debts for (1) compensation paid due to fraud, or (2) contributions owing to a state fund that weren't paid).

You can contact the agency with which you have a debt to determine if your debt was submitted for a tax refund offset.

BFS will send you a notice if an offset occurs. The notice will reflect the original refund amount, your offset amount, the agency receiving the payment, and the address and telephone number of the agency. BFS will notify the IRS of the amount taken from your refund once your refund date has passed. You should contact the agency shown on the notice if you believe you don't owe the debt or if you're disputing the amount taken from your refund. Contact the IRS only if your original refund amount shown on the BFS offset notice differs from the refund amount shown on your tax return.

If you don't receive a notice, contact the BFS's TOP call center at 800-304-3107