I'm assuming the state you live in is Indiana. If not, please clarify.
Indiana can offset. Indiana law requires that money you owe to the state, its agencies, and certain federal agencies, be deducted from your refund or credit before a refund is issued. This includes money owed for past-due taxes, student loans, child support, food stamps or an IRS levy. If the department applies your refund to any of these debts, you will receive a letter explaining the situation.
(If you don't live in Indiana, why are you filing there?)
