Question

Suppose I want use my state tax refund to pay my federal tax debt. Can I file state return now and file my federal return in April?

Answer

Yes. You can file your state and federal tax returns at any point before the filing deadline and use the refund money from the state refund to pay the tax liability on your federal return.

However, you might want to e-file both returns now. Then, submit your federal return with the e-file payment voucher by the federal tax deadline. This will allow enough time for your state return refund to arrive to cover any federal balance due.

You must pay the balance due on your federal return by the filing deadline to avoid penalties and interest.

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