Question

Will the IRS take my state refund to pay back taxes I owe?

Answer

Maybe. Under the State Income Tax Levy Program, the IRS can levy (take) your state tax refund to offset back taxes, addressing any tax debt you might owe.

If this happens, the state will give you notice of the levy. The IRS will also give a notice, after the levy, offering you the opportunity to appeal the debt offset.

The IRS won’t issue a notice if you already received a notice of intent to levy that advised you of your right to a hearing.

Learn what to do if you can’t pay your taxes or if you get a notice about a tax return or account problem.

Related Topics

Related Resources

Top IRS Audit Triggers: Nine Tax Mistakes to Avoid

What triggers the IRS to audit a tax return? Learn how common tax mistakes and errors can be a red flag and affect your chances of being audited by the IRS.

What are the current tax rates?

Find the current percentages for federal income tax rates, capital gains tax rates, Social Security tax rates and more from the tax experts at H&R Block.

The Complete Guide to the W-2 Form

The key to understanding your w-2 form is decoding the boxes and numbers. Learn how to read your w-2 form with this box-by-box infographic from H&R Block.

Form 8863

The tax experts at H&R Block outline how students and parents can file Form 8863 and document qualified expenses. Read about Form 8863 here.