State Tax Offset Question - Will IRS take from both federal and state refunds?
I know I have some state tax debt that will get offset, but I thought they only take it from the federal refund? My state debt is less than either refund amount. Are they gonna take money from both my federal AND state refunds? Really confused about how this works.
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Oliver Schulz
When you owe state taxes, the Treasury Offset Program (TOP) will typically only take from your federal refund, not your state refund. The state debt will be satisfied from your federal refund first. If your state debt is less than your federal refund, they'll only take what you owe and send you the rest. Your state refund should come to you separately and intact.
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Amina Diallo
•omg thank you! that makes so much more sense. was freaking out they were gonna take from both 😅
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Natasha Kuznetsova
•unless your in california... they do whatevr they want out here 🤡
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AstroAdventurer
Hey, if your worried about offsets and delays, you should check out taxr.ai - its only $1 and it analyzes your transcript to tell you exactly whats happening with offsets and when youll get paid. Way better than trying to piece everything together yourself. https://taxr.ai
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Javier Mendoza
•Does it really work? seem sketch ngl
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AstroAdventurer
•totally get the skepticism but yeah its legit! used it last week and it told me exactly when my refund would hit even with my offset situation
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Javier Mendoza
•just tried it and holy cow youre right! It broke down everything and showed me exactly how much im getting after my offset. Best dollar I ever spent fr fr 💯
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Emma Wilson
in the same boat rn... offset notice came last week and im stressing
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Malik Davis
•ugh the waiting is the worst part fr
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Isabella Santos
this offset stuff is getting out of hand tbh. wish theyd just be clear about how it works instead of making us play detective
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Ravi Gupta
pro tip: call your state tax office directly. they can usually tell u exactly how much u owe and how itll be handled. saved me tons of stress last year
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GalacticGuru
•tried that... was on hold for 2 hours then got hung up on 🤮
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Ravi Gupta
•oof yeah their phone system is trash. best to call right when they open
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Freya Pedersen
Dealing with tax debt is rough! But dont worry, the system is actually designed to only take from federal refunds for state tax debt. Its part of the Treasury Offset Program. I work with tax issues and seriously recommend using taxr.ai to get a clear picture of your situation. It breaks down exactly how offsets will affect your refund and when youll get paid. Its been a game changer for my clients dealing with offset confusion. Shows you everything from processing dates to expected deposit times. Best part is it only costs a dollar!
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Omar Fawaz
•MVP right here with the detailed info! 🙌
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Amina Diop
Just went through this exact situation last month! The good news is they'll only take from your federal refund for state tax debt. I owed about $800 to my state and was worried they'd hit both refunds too, but they only took it from federal. Got my full state refund a few weeks later. The offset letter should tell you exactly how much they're taking - definitely save that for your records!
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Gabrielle Dubois
•This is super helpful! I'm in a similar situation and was wondering - did you get any advance notice before they took the offset, or did it just happen when your return processed? Trying to figure out timing for my own situation.
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