If you owe past due back taxes, the IRS and state tax authorities have agreements to intercept each other's refunds. It's only a question of whether enough time has passed to get the paperwork done.
If you took the amount as a deduction as State taxes on your federal return originally (say refund is from a prior year), then getting it back now is reported as income.
Yes, California can intercept your federal tax refund to pay back state debts, including unpaid sales taxes. This process is part of the state's collections efforts to recover owed amounts. If you have a significant debt to the state, it’s advisable to address it to avoid interception of your federal refund. Always consult with a tax professional for specific situations.
No. The IRS will take an income tax refund for back federal or state taxes, unpaid child support or alimony, student loans in default, and any unpaid federal or government debt.
10 years
You will have to pay a fine. And pay all the money back that you owe.
A Federal Tax Refund is when the Government pays you back money it has technically borrowed from you during the previous year without paying you interest.
If you took the amount as a deduction as State taxes on your federal return originally (say refund is from a prior year), then getting it back now is reported as income.
Yes. My husband and I filed our federal refund jointly (mind you he was behind 3K on child support) and they took it all of what he owed. BUT, I went back and filed out an 'Injured Spouse Form' to get back what i earned.
Yes, California can intercept your federal tax refund to pay back state debts, including unpaid sales taxes. This process is part of the state's collections efforts to recover owed amounts. If you have a significant debt to the state, it’s advisable to address it to avoid interception of your federal refund. Always consult with a tax professional for specific situations.
Was an Injured Spouse form filed?
No. The IRS will take an income tax refund for back federal or state taxes, unpaid child support or alimony, student loans in default, and any unpaid federal or government debt.
The collection of owed back child support typically comes out of the non-custodial parent's federal tax refund or state tax refund, depending on the laws of the specific state. The federal and state governments have mechanisms in place to intercept these refunds and apply them towards the owed child support amount.
Yes, your Federal Tax Refund can be garnished by the state if you owe backtaxes. It can also be taken for child support and or student loans. In addition to that depending on the state your bank accounts, retirement accounts and / or wages can be garnished. Usually a State garnishment will take between 10% and 25% of your paycheck. The best thing to do is to be proactive, contact the State and enter into an official agreement to start paying back on the tax liability. Hope this helps. Roger Hadad, Effectur Inc., www.irs101.blogspot.com
10 years
Just did my taxes yesterday. I'm getting just over $11,000 back from federal and state all together.
Income tax refund is the money you get back when you’ve overpaid your taxes through TDS, TCS, or advance tax. Think of it as a refund for paying too much.
If you overpaid your federal taxes, you can request a refund from the IRS. They will send you the excess amount you paid back to you.