If I owe the state of Alabama $200.00 from last year will they hold my federal refund this year?

[AnnS7]

Yes, if you have an unpaid tax liability for the state of Alabama, they may collect it from your federal refund.  

An offset is when the federal tax refund you would have received is used to pay all or a portion of a state income tax debt you owe. If the full amount owed is not collected in one year, they may offset future federal payments to satisfy your tax debt.

The Alabama Department of Revenue may place a debt in the Treasury Offset Program.  In this program the taxpayer’s federal income tax refund may be forwarded to the Department to satisfy all or part of the debt due the state.  Please contact (334) 353-0775 for further information regarding the Treasury Offset Program.

For more information:  Alabama Department of Revenue Collection Services

[jdillard419]

Will they only take the 200.00 or would they keep my whole refund?

[AnnS7]

They will only take what your unpaid liability amount is and you'll receive any excess refund over that amount. You can call the above number to verify the amount.

[Lwagner84]

No, they will just take the amount you owe out of your refund.