Is it possible to get my state tax refund before paying what I owe on federal taxes?

I just finished my taxes and discovered I owe around $1200 to the feds but I'm getting about $900 back from my state. I'm wondering if there's any way I can get my state refund before I have to pay the federal amount? The timing is kinda important since I'm a little tight on cash right now and that state refund would really help offset what I owe federally. Currently using one of those online tax services to file everything. Anyone know if the IRS will hold my state refund until I pay them what I owe? Or are state and federal completely separate when it comes to refunds/payments?

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19 comments

GalaxyGuardian

•8M

The good news is that your state and federal taxes are handled separately! The IRS (federal) and your state tax authority operate independently of each other. So yes, you can receive your state tax refund regardless of whether you've paid your federal tax bill. Just make sure you file both returns promptly. The state will process your refund based on their own timeline, which is usually faster than federal processing. This won't be affected by your federal tax situation. However, if you're e-filing through a tax service, they might submit both returns simultaneously, which is actually good in your case.

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GalaxyGuardian

•8M

You've got it right - you can absolutely file both returns at the same time, and your state refund will process independently on its own schedule. No, the IRS will not automatically take your state refund to pay your federal taxes - they're completely separate systems. If you're concerned about your federal tax bill, you do have options. You can set up a payment plan with the IRS if you need more time to pay the full amount. The important thing is to file your federal return on time even if you can't pay the full amount immediately, as the penalties for not filing are much higher than the penalties for not paying.

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Aisha Abdullah

•8M

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Aisha Abdullah

•8M

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Ethan Wilson

•8M

Just wanted to update everyone - I was skeptical at first but I tried taxr.ai after seeing the recommendation here and it was super helpful! I was stressing about owing federal taxes while waiting for my state refund. The AI analyzed my tax documents and gave me a clear timeline showing that I'd get my state refund about 10 days before my federal payment was due. It also showed me how to set up a payment plan that would only cost me about $6 in interest instead of paying everything at once. The peace of mind was totally worth it - got my state refund exactly when they predicted and used it to pay most of my federal bill!

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Carmen Diaz

•8M

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•8M

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Yuki Tanaka

•8M

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AstroAce

•8M

Michigan is actually one of the better states for processing times! In my experience, they typically process e-filed returns and direct deposit refunds in about 10-14 days, sometimes even faster. That estimate from your tax service sounds pretty accurate. If you're worried about timing, you can check the status of your Michigan refund on the Michigan Department of Treasury website. They have a "Check My Tax Info" tool that lets you see where your refund stands. For federal, you'd use the "Where's My Refund" tool on IRS.gov, but since you owe rather than getting a refund, that's less relevant to your situation.

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Raul Neal

•9d

This is actually a really common situation! The key thing to remember is that state and federal tax systems are completely separate - your state refund won't be held up by what you owe federally. I've been through this exact scenario before. Since you're using an online tax service, they'll typically submit both returns at the same time, but each gets processed independently. Your Michigan state refund should come through in about 10-14 days if you're e-filing with direct deposit, which sounds like it'll be perfect timing for you. One tip: even if you can't pay the full $1200 federal amount right away, make sure you still file your federal return on time to avoid the failure-to-file penalty (which is much steeper than the failure-to-pay penalty). The IRS offers payment plans that can spread out what you owe over several months with minimal interest - definitely worth looking into if that $900 state refund doesn't cover everything you need.

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