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February 15, 2021
Question

It seems the amount I owe in federal taxes is being subtracted from my total state refund. So, why am I being asked how I want to pay for my federal taxes?

  • February 15, 2021
  • 1 reply
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1 reply

February 15, 2021

The federal balance due amount cannot be substracted from your state refund. The IRS and state tax departments each maintain their own, separate tax collection systems.

This means you can't apply your federal refund to pay off your state taxes, nor the other way around.