I received notification that the irs was taking $970 out in back taxes owed to state, but they took it out of my federal return and then again out of my state return?

It sounds as if the state and the IRS have not coordinated and they each pulled the offset amount before they updated one another. Since it is coming from the state, I would suggest to begin there and contact them about the double offset. You should be able to find contact information at the department of revenue website for your state.

You will always receive a notice in the mail if an adjustment or offset occurs on your federal or state refund. The notice will include the original tax refund amount and the revised amount. It will also include the agency receiving the offset payment and that agency’s contact information. If you want to dispute the amount taken from your refund, you should contact the agency that received the offset amount.

If you should need to pursue this on the federal side, here are some options.

If you have questions regarding the offset of your federal tax refund or offset of another U.S. government-issued payment, you can call the Treasury Offset Program (TOP) Call Center to obtain agency contact information during customer service hours.

Have Questions about an Offset?

    • Toll Free: 800-304-3107

    • TDD number: 866-297-0517

More information about refund offsets can be found in the following IRS Tax Topic: Tax Topic 203 - Refund Offsets for Unpaid Child Support, Certain Federal and State Debts, and Unemployment Compensation Debts.

The IRS Where's My Refund tool will contain a disclaimer if your refund may have been offset. You will get an explanatory letter from the government if your refund differs from what was on your filed return.  

If you suspect your refund is being held, sometimes people make progress contacting their local IRS center or a Taxpayer Advocate.

Please click this link to find your local Taxpayer Assistance Center.

This link will offer you more guidance on Taxpayer Advocates.