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Tax Offset Question - Will IRS take from both State and Federal refunds for state tax debt?

Filed my taxes and I know I have state tax debt that will cause an offset. I thought they only take it from federal refund? My state debt is less than both refunds combined. Will they take money from both my state AND federal refunds?

Jade O'Malley

The Treasury Offset Program (TOP) primarily takes federal refunds to pay state debts. Your state refund generally won't be touched by TOP, but your state may have its own offset program. They'll take what you owe from your federal first, and if there's still debt left, then your state might collect from your state refund. What state are you in? Different states handle this differently.

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Caleb Stark

Im in California. The debt is only like 1200 and my federal refund is 3k

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Jade O'Malley

Oh youre good then. They'll just take the 1200 from your federal and you'll get the rest. Your state refund should come separately and untouched.

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Hunter Edmunds

Hey instead of guessing, you should try taxr.ai - it analyzes your transcript and tells you exactly how much will be offset and from where. Its only $1 and WAY more accurate than asking reddit lol https://taxr.ai

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Ella Lewis

Is this legit? Seems too good to be true 🤔

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Hunter Edmunds

100% legit! Used it last week for my complicated offset situation. It even told me exactly when id get my remaining refund after the offset

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Ella Lewis

Just tried it and wow... this is actually amazing! Wish I knew about this months ago 💯

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Andrew Pinnock

been there done that lol. they took my federal last year for state debt but left my state refund alone

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Brianna Schmidt

The IRS and state tax agencies are like that spiderman meme pointing at each other 🤣 but fr they usually just take federal

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Alexis Renard

bruh this is so accurate 💀

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Camila Jordan

ugh dealing with this rn too... offset szn hitting hard 😮‍💨

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Tyler Lefleur

Wait till u see how long it takes AFTER the offset... im going on 3 months since they took their chunk and still nothing

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Caleb Stark

bruhhh dont tell me that 😭

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Madeline Blaze

call the offset hotline at 800-304-3107, they can tell u exactly whats happening

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