If i owe the state of Alabama taxes will the federal government withhold my federal refund? How likely is it?

Question

I don't owe alot not compared to the usual but it is in the hundreds

Answer 1

Count on it.

Answer 2

No. the federal government won't withhold your State tax refund so as to fulfill your Federal volume due. you could have your State refund despatched as an instantaneous deposit on your financial institution (so which you would be able to get it quicker and greater secure). Then after your State refund gets deposited, write a examine to your Federal tax due (previously April twenty 6th). The Feds will additionally settle for an EFW (digital money withdrawal) out of your reductions or checking account. i in my opinion do not propose this selection to my customers as a results of fact a canceled examine is verifiable evidence that they have got been given paid.

Answer 3

You just deleted your 1st question!

Well, if is not that much try to pay it & get yourself off the hook.

There is something called "Federal and State Offset Program". I know it works for the Federal Student Loan. However, Federal refund won't offset against what you owe for the State Tax. Alabama State Department of Revenue can automatically withdraw money (garnish your wages) for the delinquent amount & plus you pay penalties. Some states even can suspend your driver's license until you pay the delinquent amount.

Answer 4

If the state processes your debt through FMS, the arm of the Treasury Department that handles this type of issue, you can count on it. Most states do use FMS to capture tax refunds for unpaid taxes so there's a strong likelihood of it.

And please ignore the rant about the "Fair Tax." It has no more chance of passing that Paris Hilton has being elected President.

Answer 5

If this is from last year, maybe.

Of course all this will be moot when the FairTax Act H.R. 25 passes and replaces all income taxes with a single sales tax on new items. The FairTax now has the support of hundreds of thousands, 72 congressional sponsors / co-sponsors, and 7 presidential candidates. See www.fairtax.org
Fundamentals and facts http://www.fairtax.org/PDF/FairTax-Funda...
Frequently Asked Questions about the FairTax http://www.fairtax.org/fairtax/faqs.htm