Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Mar 25, 2020 7:02:28 AM

State tax refund offset

I received my federal refund in which they took out the offset money I owed to my State taxes from last year. Now the State is also offsetting my State refund and has taken the whole refund even though the federal already took it from my federal refund. My question is. What is going to happen to the money from my State refund when the offset was paid with my federal refund? Do I have to keep calling them or will it correct itself and sent me the money that was over charged?

0 1 431
1 Best answer
Level 15
Mar 25, 2020 7:28:28 AM

It should correct itself once they notice that you had an over payment on your debt.  It can take a little while for that to happen.  You might want to contact your State and/or who you owe the debt to make them aware of what happened.  

2 Replies
Level 1
Mar 25, 2020 7:17:43 AM

If the offset took the money I owed out of my federal refund why is the state taking my state refund for the same debt. What will happen to the extra money that I was charged? Will it correct itself and send me the difference or do I have to keep calling the State? This offset was for taxes I owed the state from my 2018 tax return. I owed 800 and they took 940 out of my federal refund and took my state refund for 563.

Level 15
Mar 25, 2020 7:28:28 AM

It should correct itself once they notice that you had an over payment on your debt.  It can take a little while for that to happen.  You might want to contact your State and/or who you owe the debt to make them aware of what happened.