I had an outstanding balance with the IRS and my Federal refund covered it. Why did my state refund also go towards the balance? How do I recover that money?

[PeterM · Accepted solution]

I'd start calling your state's revenue department and ask them. Turbo Tax does not have the authority to direct where your refund goes...or what state agency takes it. If you happen to have a debt with the IRS, then they have the ability to intercept your refund to satisfy that debt. Again, the best place for information would be your state's taxing authority.