Solved: 2019 Taxes Owed
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WSA
Level 1

2019 Taxes Owed

I was sent a collection notice for 2019 taxes due to accountant errors and i am now eligible for a refund for 2020 taxes, are owed funds automatically taken from federal or state taxes when filing with turbo tax for 2020 or are there necessary extra steps to be taken?

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Accepted Solutions
JoannaB2
Expert Alumni

2019 Taxes Owed

No.  There's none. Your 2020 income tax retund can be taken to offset prior federal debts such as student loan, back taxes, child support, and other federal debts.. You should also receive a notice of explanation from the IRS why the money was withheld. 

 

Under the CARES ACT (EIP 1), your entire Economic Impact Payment authorized by the CARES Act, can be offset, up to the amount of your child support debt. 

 

The Economic Impact Payments (EIP 2), authorized by the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 are not subject to offset for any reason.

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3 Replies
JoannaB2
Expert Alumni

2019 Taxes Owed

No.  There's none. Your 2020 income tax retund can be taken to offset prior federal debts such as student loan, back taxes, child support, and other federal debts.. You should also receive a notice of explanation from the IRS why the money was withheld. 

 

Under the CARES ACT (EIP 1), your entire Economic Impact Payment authorized by the CARES Act, can be offset, up to the amount of your child support debt. 

 

The Economic Impact Payments (EIP 2), authorized by the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 are not subject to offset for any reason.

View solution in original post

WSA
Level 1

2019 Taxes Owed

Im Sorry I may have been unclear. I am about to e-file with turbo tax for 2020 and am owed a federal and state refund, my 2019 taxes were done by a supposed CPA and I was sent a "Withholding of Federal Payment Due To You" collection action letter back in Nov. of 2019. Is there anything I have to do before I submit my 2020 return with TurboTax? I did not see anything where I can pay what is owed before filing for my return. What is owed is well beneath what my return should be. 

DawnC
Employee Tax Expert

2019 Taxes Owed

No, you don't have to do anything in order to e-file your 2020 return.   They will keep what you owe before refunding you.  If you ever need to make a tax payment, you can do so on the IRS website.  

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