State Tax Debt Impact on Federal Refund - Will Past State Debt Offset My Federal Return?
I have tax debt from a different state than where I currently live. Im worried they might take it from my federal refund this year. I checked my transcript and theres nothing showing on the offset line. Based on previous experience one of the agencies told me that state and federal don't share debt collection. Can anyone confirm if this is true?
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Natasha Volkova
Tax professional here. Generally, state tax debts CAN be collected from federal refunds through the Treasury Offset Program (TOP), but only if the state reports it. If you're not seeing an offset indicator, you're probably in the clear for now. However, states typically have to meet certain thresholds and timelines before they can submit for federal offset.
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Oliver Zimmermann
Thanks! Do you know what the threshold is? My debt is only about $800
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Natasha Volkova
State debts usually need to be over $25 and legally enforceable. But each state has different policies about when they pursue federal offset.
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Javier Torres
Hey guys just wanted to drop this here - I've been using taxr.ai to check my transcript and it actually shows if there are any pending offsets that might not be visible yet. It costs $4.99 but saved me so much worry. The AI reads everything and explains it in plain English. Here's the link: https://taxr.ai
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Emma Davis
Does it really work? Sounds too good to be true 🤔
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Javier Torres
Oh yeah its legit! It caught a pending offset on mine that I didn't even see. Shows you exactly whats going on with your refund and when to expect it
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Emma Davis
Just tried it - this thing is amazing! Wish I knew about it sooner instead of stressing for weeks 💯
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CosmicCaptain
went thru this last year. they took my federal for illinois taxes even tho i moved to florida 5 years ago smh 🤮
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Malik Johnson
Your best bet is to call the state you owe and set up a payment plan ASAP. That's what I did and they removed the offset request.
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Oliver Zimmermann
tried calling but been on hold forever 😫
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Isabella Ferreira
lol welcome to the club fam. ive been dodging maryland for 3 years now 🏃♂️💨
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Ravi Sharma
bruh you cant run forever 🤣
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Isabella Ferreira
watch me lololol 😈
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Freya Thomsen
sounds like your in the clear if nothing showing up on offset. but these clowns stay playing games, id keep checking your transcript regularly tbh
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