What Happens If I Don’t File State Taxes in Each Situation
Your state tax agency’s website is the best place to get answers for your situation. Use this table to know what to ask.
| Your situation | What to check with your state tax agency |
|---|---|
| You owe state tax | Ask how much you owe and how to pay. Your federal refund can be offset to cover the debt, according to the Bureau of the Fiscal Service. |
| You owe and can’t pay in full | Ask about tax relief and payment help. Most agencies have a taxpayer advocate. |
| You’re owed a refund | Check your refund status and when your return is due. |
| You’re not sure you had to file | Whether you must file depends on your state and your income, so check with your agency. |
Not sure which row fits? Our guide on whether you have to file taxes explains filing requirements.
How Your State Finds Out You Didn’t File
Your state may learn you skipped a return even if you never contact it. A state tax agency is the state office that collects income tax, often called the Department of Revenue.
The IRS shares federal tax return data with these agencies under Internal Revenue Code Section 6103(d), according to IRS Publication 6009. That section allows the IRS to share tax data with other government agencies for tax administration. The same publication says most state revenue agencies take part in this data exchange. The IRS also sends states its audit results in an automated format.
The Internal Revenue Manual adds that the IRS sends this information to state tax agencies by secure electronic transmission. That means your federal return information can reach your state’s tax agency.
How a State Can Take Your Federal Refund
If you owe your state and don’t pay, it can collect from your federal tax refund through an offset. An offset is when the government keeps some or all of a payment owed to you to cover a debt you owe.
According to the Bureau of the Fiscal Service, state tax agencies send information about delinquent state income tax debt to the Treasury Offset Program. By law, that program can offset your federal refund to pay what you owe the state. In fiscal year 2024, it collected $720.9 million in state income tax debt.
What to Do If You Haven’t Filed Your State Return
Here’s where to start:
- Check with your state tax agency whether you were required to file, since that depends on your state and your income.
- File your state return as soon as possible, even if you can’t pay the full balance.
- Ask your state tax agency how much you owe and how to pay.
- Contact your state tax agency to ask about payment options or tax relief. Most have a taxpayer advocate or ombudsman who can help with tax problems.
If you’re also behind on your federal return, read what happens if you file taxes late to understand the federal side.
