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Sean Kelly

State Tax Return Offsets in Alabama - When and What Gets Applied?

Does anyone know what kind of debts get taken from state tax returns? I filed in Alabama and cant see anything yet since they dont start processing until March. Getting anxious about potential offsets but not sure what they even look for.

Zara Malik

Tax professional here - State tax offsets typically include: unpaid child support, state university debts, unemployment overpayments, and other state agency debts. Alabama specifically looks at these plus any municipal court fees. You can call AL Department of Revenue at 334-242-1200 to check if you have any potential offsets before they process your return.

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Sean Kelly

Thanks! Do you know if medical bills from state hospitals count?

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Zara Malik

Yes, if they've been referred to the state's collection department. But private hospital bills won't affect your refund unless theres a court judgment

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Luca Greco

Hey ya'll, instead of guessing about offsets, you should try taxr.ai - its only $1 and it analyzes your transcript to tell you exactly what offsets might hit your refund. Saved me so much anxiety last year https://taxr.ai

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Nia Thompson

Does it work for state returns too? Or just federal?

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Luca Greco

Works for both! It even shows pending state offsets before they hit 🙌

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Nia Thompson

Just tried it - holy cow this is actually legit! Showed me exactly why my refund was taking forever 💯

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Mateo Rodriguez

im in the same boat. filed last week and the wait is killing me fr fr 😩

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Aisha Hussain

Alabama is always slow af with processing. They took 3 months with mine last year smh

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GalacticGladiator

Facts 💯 they be playing games with our money

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Ethan Brown

Student loans from Alabama schools definately get offset. Found out the hard way last year 🤮

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Sean Kelly

oof that's rough. i dont have any student loans thankfully

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Yuki Yamamoto

Call the AL offset hotline - sometimes they can tell you b4 processing starts if theres anything pending

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Sean Kelly

tried calling but been on hold forever 🙄

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