So I owed money from last years (2024) taxes. I knew this year my situation would change and I could pay for it with this years taxes. Well my federal refund had enough to settle the debt and then some. I’m getting the remainder back. Great. But what also happened was my state refund was also taken, over and beyond what I was owed. I double checked what I owed and what I was supposed to get back to know this shouldn’t have happened.
Just wondering what the process I should be looking into to getting the extra money that was taken, back. I’m also aware I created this problem so I’m not mad or upset. I know I could have handled this better. Just looking for the way forward now.
Owed money to IRS and they’re double dipping taking it back
byu/Landscaperdanh intax
Posted by Landscaperdanh
5 Comments
If you didn’t pay on time you were subject to interest and penalties. That more than likely makes up the difference. You’ll get a letter from the IRS explaining this.
Check your account transcripts
Check your account transcript. If there is an overpayment, the computer will refund it automatically. It can take 2-3 weeks.
How can they take your state refund?
You saying you were expecting X back from your irs refund and irs deducted the amount you owed and sent you a notice you are receiving less back?
The amount will post as a credit on your IRS tax account. You will be able to use it as a credit towards your 2026 taxes, or they will send a refund in 12-16 weeks.