Will I Get My Federal Refund If I Owe State Taxes?

by | Last updated on January 24, 2024

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No. Federal income taxes and State income taxes are totally separate.

State income taxes owed cannot be paid with a federal tax refund

. And Federal income taxes owed cannot be paid by a State income tax refund.

Will owing state taxes delay my federal refund?


You tax refund could be reduced to pay delinquent state taxes

. When you file your federal taxes and are owed a refund, you may not get that refund in your pocket if you owe the state or federal government money. … The program could result in your refund being reduced by the amount you owe in state taxes.

Can state debt take federal refund?


Federal law allows only state and federal government agencies

(not individual or private creditors) to take your refund as payment toward a debt.

Why do I get a federal refund but owe state taxes?


If you paid too much in taxes during the year through payroll withholdings

, then you may get a refund. If you paid too little in withholding then you may owe additional tax. If you live in a state that assesses income tax, then you’ll need to file a state return along with your federal return.

How do you know if your federal tax return will be garnished?


Phone FMS at 800-304-3107

to determine which organization will receive your garnished refund. Also, you can call the IRS at 800-829-1040. Provide your taxpayer identification number and inquire whether or not a garnishment is pending on your tax refund.

How much of your tax refund can be garnished?

Lenders are able to garnish

up to 15% of the borrower’s wages

in that case without a court order, according to Mark Kantrowitz, publisher and vice president of research for Savingforcollege.com.

What comes first state or federal?


Federal has always come first

and the state return usually a week or two after. Did something go wrong? The timing of a federal tax return refund and one from your state can vary. The state refunds are sometimes processed quicker than the IRS depending on the individual state timing.

Is it better to claim 1 or 0?

By placing a “0” on line 5, you are indicating that you want the most amount of tax taken out of your pay each pay period. If you wish to claim

1

for yourself instead, then less tax is taken out of your pay each pay period. … If your income exceeds $1000 you could end up paying taxes at the end of the tax year.

Will I get a refund if I owe back taxes?

If you owe back taxes,

the IRS will take all your refunds to pay your tax bill

, until it’s paid off. The IRS will take your refund even if you’re in a payment plan (called an installment agreement).

How do I know if IRS is keeping my refund?

If you need more information on the offset,

contact the Bureau of the Fiscal Service (BFS) at 800-304-3107

(or TTY/TDD 866-297-0517) to find out where Treasury applied your tax refund.

Can a Judgement take my federal tax return?

If you’re expecting a tax refund but have concerns about creditors garnishing it, you may be worrying too much.

Federal law allows only state and federal government agencies (not individual or private creditors) to take your refund as payment toward a debt

.

How do I know if my taxes are being audited?

If you are being audited you will

get a letter in the mail from the IRS

. they do not email or call, ever! Only notify by letter.

Who can garnish your tax refund?

Federal law allows

only state and federal government agencies

(not individual or private creditors) to take your refund as payment toward a debt.

How do I stop the IRS from taking my refund?

Keep the IRS from taking your refund with

an IRS hardship refund request

. You must prove that you are facing financial hardship and need the refund for a key purpose, such as buying food for your family, paying for gas so you can get to your job, continuing your education, and so on.

Can child support Take my stimulus check?

Your third stimulus

payment can’t be seized to pay child support

. Under the CARES Act

Why did I get my state but not my federal?

The IRS

processes federal tax returns

, while your state government processes the state tax returns. These are two different administrations that work independently of each other. So, it is common for you to receive your state tax refund before you receive your federal refund.

Ahmed Ali
Author
Ahmed Ali
Ahmed Ali is a financial analyst with over 15 years of experience in the finance industry. He has worked for major banks and investment firms, and has a wealth of knowledge on investing, real estate, and tax planning. Ahmed is also an advocate for financial literacy and education.