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Will I get my federal refund if I owe state taxes?

By Olivia Norman |

No. Federal income taxes and State income taxes are totally separate. State income taxes owed cannot be paid with a federal tax refund. And Federal income taxes owed cannot be paid by a State income tax refund.

Will I get my tax refund if I owe back taxes?

If you owe back taxes, the IRS will take all your refunds to pay your tax bill, until it’s paid off. The IRS will take your refund even if you’re in a payment plan (called an installment agreement).

How do you know if you owe taxes or get a refund?

Once you know the total amount of the taxes you owe, subtract any tax credits, such as the Earned Income Tax Credit. Compare that number to how much your employer has withheld in taxes throughout the year. If your employer withheld more than you owe, you will get a refund.

Do you still receive your state tax refund if you owe back?

If you live in a state that participates in the State Income Tax Levy Program, any back taxes which you owe the federal government could be deducted directly from your state income tax refund. SITLP is an automated program that matches federal tax returns with state tax returns when an individual taxpayer owes delinquent taxes.

How long does it take to get your state refund?

On occasion, state and federal refunds amount to more than you owe. If that happens, you get to keep whatever remains of your refunds, but it may take four to six weeks longer than usual to receive that money.

Can you file state but get federal refund?

I owe federal but getting refund on state. Can I file state now and file federal when I get my state refund? Your Federal Return has to be e-filed first and accepted before you can e-file your state.

Can a state tax refund be seized by the IRS?

The Internal Revenue Service can seize state income tax refunds to collect delinquent federal income taxes in most states and the District of Columbia. The IRS program for refund seizures is called the State Income Tax Levy Program, or SITLP. If you owe the IRS, but still got a refund, you likely live in a state that does not participate in SITLP.