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June 1, 2019
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Can any kind of outstanding bills interrupt my federal or state return?

  • June 1, 2019
  • 1 reply
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I got a letter thru mail regarding my state return, it was a notice informing me that my whole state return was being taken from me to pay for some ticket that's from a different state that I don't even live in......is my federal return at risk from these kind of outstanding tickets/bills/charges? or is this type of thing on done on state returns?

Best answer by DawnC0

Many of the state and local governments are allowed to deduct unpaid parking tickets from an individual's state tax refund.  However, the federal government is not in the habit of doing this. The federal tax refund could be held for federal student loans, unpaid social security and other federally granted commissions. Parking tickets fall under the jurisdiction of local government and then state when it comes to garnishing a tax refund.

Here is more information on the Treasury Offset Program from the IRS and TurboTax:

Who Can Garnish Tax Returns

Treasury Offset w/ Bureau of Fiscal Service Links

 

1 reply

DawnC0
DawnC0Answer
Employee
June 1, 2019

Many of the state and local governments are allowed to deduct unpaid parking tickets from an individual's state tax refund.  However, the federal government is not in the habit of doing this. The federal tax refund could be held for federal student loans, unpaid social security and other federally granted commissions. Parking tickets fall under the jurisdiction of local government and then state when it comes to garnishing a tax refund.

Here is more information on the Treasury Offset Program from the IRS and TurboTax:

Who Can Garnish Tax Returns

Treasury Offset w/ Bureau of Fiscal Service Links