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?
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 April 15. 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.
Related Resources
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The W-4 Form is the IRS document you complete for your employer to determine how much should be withheld from your paycheck for federal income taxes and sent to the IRS. Accurately completing your W-4 will help you avoid overpaying your taxes throughout the year or owing a large balance at tax time.
Learn more about notice CP2005, why you received it, and how to handle the notice with help from the tax experts at H&R Block.
