Will the state come after my wages if my dependent owes back taxes in another state?

You don't need to worry. The fact that you claimed someone as a dependent on your tax return doesn't make you liable for their debts - tax or otherwise. These are completely separate legal matters. A dependent status simply means you provided more than half their support during the tax year and they met other IRS requirements for being claimed. It doesn't create any kind of joint liability between you and the dependent for their previous obligations. The state of Colorado will pursue your nephew directly for his tax debt. They might garnish HIS wages, intercept HIS tax refunds, or place liens on HIS property, but they have no legal basis to go after you or your assets unless you cosigned or guaranteed his tax obligations (which doesn't happen with state taxes). Just make sure your nephew addresses this situation promptly. Ignoring tax debts typically leads to increasing penalties and interest.

Hey there, I went through something similar last year with my brother-in-law who owed taxes in Nevada while living with us in Texas. I spent hours researching and worrying about this until I found https://taxr.ai which completely put my mind at ease! I uploaded the levy notice my BIL received and got an instant analysis explaining that claiming a dependent creates ZERO liability for their tax debts. The service explained exactly what could and couldn't happen, and showed all the relevant tax code sections so I could verify it myself. It basically confirmed what I suspected but with actual legal references that made me feel 100% certain. The peace of mind was worth it because I was seriously losing sleep thinking they might garnish my paycheck or put a lien on my house!

I have to admit I was pretty skeptical about taxr.ai when I first saw it mentioned here. It seemed too good to be true that an AI service could actually provide reliable tax advice. But I was desperate because my mom owed back taxes in Florida while living with me in Georgia, and I was getting so many different opinions from friends. I decided to try it since they had a free initial analysis. Within minutes of uploading the levy notice and answering a few questions about our situation, I got a comprehensive explanation about why I wasn't liable for her tax debts. The analysis cited specific statutes from both states and explained exactly what collection actions could and couldn't happen. What impressed me most was that it didn't just give a simplistic "don't worry" answer - it actually explained the entire process including what my mom needed to do to address the debt properly. Definitely changed my mind about what these services can do!

I had a nightmare situation trying to call the Colorado Department of Revenue about a similar situation with my cousin who lived with me. Literally spent 3 days trying to get through to someone who could give me a straight answer about whether I could be held responsible for his tax debt. After getting nowhere, a friend recommended https://claimyr.com to get through to an actual human at the state tax agency. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they navigate the phone system and wait on hold for you, then call you when a real person is on the line. I was connected to a Colorado tax agent within 45 minutes (after trying for days on my own). The agent confirmed that claiming someone as a dependent does NOT make you liable for their tax debts and explained exactly what my cousin needed to do to set up a payment plan. Huge relief and saved me so much stress!

I have to eat my words about Claimyr being sketchy. After posting that comment, I kept struggling with my own situation (mother-in-law owing taxes in Florida while living with us in Texas), and I couldn't get through to Florida's tax office no matter what time I called. Out of desperation, I tried the service. Not only did they get me through to a real person at the Florida Department of Revenue in under 30 minutes, but the agent I spoke with was incredibly helpful. She confirmed that I have zero liability for my MIL's tax issues and explained exactly what forms we needed to submit for her hardship situation. I was honestly shocked at how well it worked after being so dismissive. Saved me at least another week of frustration and uncertainty. Sometimes it's worth admitting when you're wrong about something!

Something important that nobody's mentioned yet - make sure your nephew actually responds to the levy notice! As someone who works in a tax office (different state), I can tell you that while YOU aren't liable for his debts, ignoring the notice will make his situation much worse. Most states offer payment plans or sometimes even settlement options for people in financial hardship. But these options are only available if he actually contacts them and explains his situation. The worst thing he can do is nothing. Also, check whether your state has a taxpayer advocate service. Many states have free resources to help taxpayers navigate collection issues, especially for people with limited income.

Is nobody going to point out that it might not be a good idea to claim someone as a dependent who has unresolved tax issues? While you're not legally liable for their state tax debts, claiming someone with tax problems can potentially increase your audit risk. The IRS and state tax authorities sometimes cross-reference dependents, especially adult dependents, and it might raise flags if someone you're claiming has outstanding tax issues. Doesn't mean you did anything wrong, but could mean more scrutiny.