Why are you taking my federal refund when you have my state refund?

Collections

The federal refund is taken first to pay your debt; then the state refund is used. It could take up to six weeks to determine how much of your state refund is needed.

You will receive notification from the agency that is taking your refund.

If the refunds or your payments overpay your state debt, the balance will be returned to you. Again, please allow six weeks to process your refunds and payments.

If you have a payment agreement with the Iowa Department of Revenue, that does not stop us from taking your refund(s) to pay the balance due.