What if I don't file my state taxes and the state would owe me money?

Nope. If they owe you money and you don’t file you are fine. I’m not sure why you wouldn’t since you have already done the hard part (filling out the forms).

Then you get nothing.

….why would you not file them? That is money they used of yours – bad enough you didn’t have it throughout the year, but they don’t pay interest. File them!

There is a statute of limitations on how long they owe you the money. If however you owe them money, there is no statute of limitations.

I think in most states as with the federal government, you are required to file if you made over a set amount of money whether there is indebtedness or not. I live out of the country but am still required to file federal tax returns.

The state hasn’t ever owed me money, how much of a loan did you give them?
It’s a quick process, and can probably be filed free online.
You should get your money back.

After three years, you are no longer entitled to deductions.

So in year four, you owe them money. Thats when they will come calling.

You should file, if for no other reason than to keep yourself off the radar in the event you do file during other years. They may question why you skipped a year, or whatever.