If I owe federal taxes, do they automatically take it from my state return refund? Thank you.

Forum|Forum|6 years ago
May 31, 2019
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Best answer by DoninGA

No. Federal income taxes and State income taxes are totally separate. State income taxes owed cannot be paid with a federal tax refund. And Federal income taxes owed cannot be paid by a State income tax refund.

DoninGAAnswer

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DoninGA

Employee

And Federal income taxes owed cannot be paid by a State income tax refund.

cherylandfrank

Employee

Actually the state of West Virginia will take it from your Federal refund, if you own your own home or have a mortgage. However, it will show on your credit report as a Lien against your home. The only way to get it off your credit, is to call your state treasury and have them send you a report that it was indeed paid in full. You then have to send this report to all 3 credit agencies to have it removed of your credit report. You then have to send the report to your local court house in the personal property department, because the Dept. of Treasury doesn't update all these issues for awhile, making it your responsibility. Unfortunately, I learned this the hard way. It is not worth being on your credit report for many years and it is NOT worth the hassle getting the lien removed.