Question about State Tax Offset? Please help.

[Mcrt88]

So, last year I ended up owing money to my state taxes. However, after they sent a few letters, I set up a payment plan. I’ve been making those payments, but in October I got a notice of intent to offset refund. I called and they said even with a payment plan, that I can still be offset for what’s owed. Well, this year I filed my taxes, ended up getting federal refund again and owing (less this year) to state again. Needless to say I need to adjust my withholding this year for state.

However my Question is: I got tax topic 203, I know I will be offset. However will they just take what I owe from last year or will they take last AND what I ended up owing this year? Can they offset my federal refund that fast? My state return was JUST processed about a week ago.

[Target]

Oh, btw, they can take same amount from Fed, too. Thankfully they never do mine. I bet they’re tempted as it is a nice size! I pay more taxes throughout the yr. I get it all back and then some. However for future reference, if ever you notice they are double dipping (both fed & state intercepted same amount) – call, report it. You will be refunded half back, you will not if you don’t make a fuss.

[Target]

This is true. My wages are garnished (agreed upon $200 from my State every yr), this yr they took more. Got State last night (Monday). So, not happy, but it is what it is. I am paying a debt. So….

[Princesstoyia]

@mcrt88 If you just filed your state though. I doubt they will take it that fast as you have until April 15th to pay 2019 state taxes.

[Princesstoyia]

@Mcrt88 Hey hun. They will take whatever you owe (last year and this year if it’s all on the same account) and if there is anything left they will give it to you. If you are still owed a refund they won’t hold your refund up. You will still get your refund whatever date you are told just minus what you owe. I hope that helps

[Mcrt88]

@flowers58

I thought that too. So I wasn’t sure, I just didn’t know if the debt had to be “past due” to be taken or if they could because technically it’s all on the same “account”

[Molly]

I believe you have til 4/15 to pay your state…I would think they’re only offset past debt.

[Mcrt88]

This is my first year being offset, so I really have no knowledge of how it works. I visit this site frequently and figured you guys would know best.

[Author]

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