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New Member
posted Jun 5, 2019 10:20:20 PM

Can my Oregon state taxes be taken by the irs or just federal I live in Washington but work in Oregon and pay state income taxes

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1 Replies
Expert Alumni
Jun 5, 2019 10:20:22 PM

Some states do have a program that works like the Federal program but not all.  Check the Oregon Department of Revenue Site for state specific information. 

Other related information:

  • Federal law allows only state and federal government agencies (not individual or private creditors) to take your refund as payment toward a debt. However, once you deposit the refund into your bank account, these rules no longer apply.
  • 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.
  • Government agencies frequently garnish federal income tax refunds since they are the most common federal payments. The TOP is the only way your refund can be garnished; private creditors such as credit card companies don’t have access to your tax refund. Moreover, only certain types of government debts are eligible for TOP. These include past-due court-ordered child support payments, outstanding debts with federal agencies other than the Internal Revenue Service, past-due state income taxes and any unemployment compensation you must pay back.