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

What To Do If You Forgot To File Taxes

What happens if you forgot to file taxes? Explore your options to find what's best for your situation. Get tax answers at H&R Block.

Ability to Pay

If you can't pay your taxes and request an IRS installment agreement, the IRS may need to determine your ability to pay using specific calculations.

Form 1099-R, Distribution From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

You will receive a Form 1099-R when you make a withdrawal from a IRA, 401(k) or other retirement account. Learn more from the tax experts at H&R Block.