topic If I owe money from a different year, will my next return deduct money to pay what I owe? in After you file

If I owe money from a different year, will my next return deduct money to pay what I owe?

b15w1737 — Tue, 24 Feb 2026 08:26:04 GMT

Re: If I owe money from a different year, will my next return deduct money to pay what I owe?

VolvoGirl — Sun, 10 Dec 2023 04:21:03 GMT

Yes. The IRS will keep any refunds for prior year tax due.

Re: If I owe mone from a different year, will my next return deduct money to pay what I owe?

b15w1737 — Sun, 10 Dec 2023 04:26:01 GMT

Okay thank you so much it’s very confusing, also I am on a payment plan . I’m trying to pay it off before I have to do my 2023 taxes does that effect me ?

Re: If I owe mone from a different year, will my next return deduct money to pay what I owe?

xmasbaby0 — Sun, 10 Dec 2023 13:34:10 GMT

TurboTax never knows if you owe back taxes to the IRS or state, so the software is not going to calculate the tax you owe and "deduct" it from your 2023 refund, if that is what you meant. The 2023 software will only calculate your refund or tax due for tax year 2023. But....if you are getting a refund for 2023, the IRS knows that you owe, and the IRS will offset your refund for the amount you owe from past years even if you are on a payment plan.

https://www.irs.gov/uac/tax-refund-offsets-pay-unpaid-debts

IRS Treasury Offset Program Call Center at 1-800-304-3107

https://www.irs.gov/uac/tax-refund-offsets-pay-unpaid-debts

https://ttlc.intuit.com/community/refunds/help/what-is-a-refund-offset/00/26301

Reduced Refund https://www.irs.gov/taxtopics/tc203

NOTE: You can contact the IRS Treasury Offset Program Call Center at 1-800-304-3107 to ask if they have an offset for you on file. TurboTax would not have that information.

https://turbotax.intuit.com/tax-tips/tax-payments/who-can-garnish-an-income-tax-refund/L7cPPzDyc

Re: If I owe mone from a different year, will my next return deduct money to pay what I owe?

chowey3457 — Tue, 04 Feb 2025 05:05:15 GMT

Yes, the IRS will take your refund and apply it to the year that it's owed to regardless if you have a payment plan paying it off. Any left over will be sent to you.

Re: If I owe mone from a different year, will my next return deduct money to pay what I owe?

Adalay Grace — Thu, 13 Mar 2025 15:07:14 GMT

So I owed in 2023 $70 to the IRS and this year I got back $100 and $165 but it’s been almost two months since I’ve gotten the first amount why haven’t I gotten the rest since the money should apply to the $70 amount. Please and thank you for your help I don’t know anything about this

Re: If I owe mone from a different year, will my next return deduct money to pay what I owe?

xmasbaby0 — Thu, 13 Mar 2025 15:16:42 GMT

@Adalay Grace When you say you received the "first" $100 and then $165---do you mean you received a federal refund and a state refund? We cannot see your return or your account, so we have no idea of how much your refunds were supposed to be for.

If you still owed the IRS for tax due in 2023 that you did not pay, it was owed with interest as well as the original $70. If the IRS took the money out of your 2024 refund, they will be sending you a letter in a few weeks to explain. You can also look on the IRS refund site and see some information.

When you look on the IRS site---how much does the IRS say they issued for your 2024 refund?

You need your filing status, your Social Security number and the exact amount (line 35a of your 2024 Form 1040) of your federal refund to track your Federal refund:

https://www.irs.gov/refunds

Re: If I owe mone from a different year, will my next return deduct money to pay what I owe?

Adalay Grace — Thu, 13 Mar 2025 21:10:28 GMT

I received the federal which was $107 but I haven’t gotten the state yet which was $165 I got the letter saying the $70 will be paid with the rest of my taxes but I received the letter almost a month ago I used the website to check the status and they said the last record was in March 4 and I should receive my taxes after 2-4 weeks. I’m just confused on why the $107 came within 6 days but the state still hasn't came.

Re: If I owe mone from a different year, will my next return deduct money to pay what I owe?

Adalay Grace — Thu, 13 Mar 2025 21:13:10 GMT

The record was February 4th not March sorry for the mix up

Re: If I owe mone from a different year, will my next return deduct money to pay what I owe?

xmasbaby0 — Thu, 13 Mar 2025 22:32:51 GMT

Federal and state refunds come from completely separate entities, There is no rule as to which one will come first or how much time there will be between their arrivals. Some states process returns quickly and some are very slow.

STATE RETURN

Make sure your state return was accepted: https://turbotax.intuit.com/tax-tools/efile-status-lookup/

To track your state refund:

ttps://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-refund/track-state-refund/L3jgO8PGs_US_en_US?uid=lt447ebr

https://ttlc.intuit.com/turbotax-support/en-us/help-article/state-taxes/contact-state-department-revenue/L9qVToi02_US_en_US?uid=m6e06um0

Re: If I owe mone from a different year, will my next return deduct money to pay what I owe?

Adalay Grace — Fri, 14 Mar 2025 16:42:57 GMT

Thank you so much for the help!

Re: If I owe money from a different year, will my next return deduct money to pay what I owe?

Curlyman17 — Sat, 05 Apr 2025 18:05:11 GMT

Hi I owe back taxes from a previous year but now I owe taxes this year. Will they add that to my taxes I already owe or do I have to pay that separately?

Re: If I owe money from a different year, will my next return deduct money to pay what I owe?

MonikaK1 — Mon, 07 Apr 2025 16:43:05 GMT

Each tax year is accounted for separately, but the IRS will generally apply payments to the oldest year first.

If you already have an installment agreement with the IRS, you can apply to revise your existing IRS installment agreement to add any remaining tax for 2024. See this IRS webpage for details.

From IRS Topic 202:

If you can't pay in full immediately, you may qualify for additional time --up to 180 days-- to pay in full. There's no fee for this short-term payment plan. However, interest and any applicable penalties continue to accrue until your liability is paid in full. Individuals may be able to set up a short-term payment plan by using the Online Payment Agreement application or by calling us. Businesses must call for a short-term payment plan. Check the hours of availability.

@Curlyman17