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Deduction of State Taxes from Feferal Refund

After I filed my taxed via TurboTax, my my state tax due was subtracted from my feferal refund, indicated by the total refund shown in TurboTax (SEE Below) even though I paid my turbotax fee with a credit card and selected the option to have my state taxes due scheduled to be paid by a withdrawel from my checking acccount on 5/1/24.  Although I have not received my refund, I'm just trying to avoid having my state taxes being taken out twice, which is not legal for TurboTax to do, but I have seen a post where a member claimed that this happened to them.

 

2023 tax return
$3,166
 refund
$3,166
 
  1.  
    Step 1, completed
    Submitted
    03/03/24
  2.  
    Step 2, completed
    Accepted
     
  3. Step 3, incomplete
  1. est. 03/25/24
FEDERAL
$4,034
Accepted
03/04/2024
 
STATE VA
$868 due
Accepted
03/04/2024
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2 Replies

Deduction of State Taxes from Feferal Refund

You misunderstood.   TurboTax gives you a summary that shows your federal refund and your state tax due.  The summary "nets out" the difference.   Users sometimes misinterpret that and think the IRS will pay the state for them.  That NEVER happens.   You cannot pay the state from a federal refund.  The IRS and your state treasuries are completely separate from each other.

 

You will get your full federal refund when the IRS issues it.  The only thing that could be deducted from your federal refund will be your TurboTax fees  IF you chose to pay TT from your federal refund instead of paying upfront with a credit or debit card.   You say that you paid TurboTax----so there are no outstanding fees to be paid from your refund.

 

Your state tax due must be paid ----by YOU---by April 15, 2024.

 

You must pay your state tax due using the state’s preferred method of receiving payment.  For most states that will be by making a payment to the state’s own tax website, or by mailing a check or money order.

https://ttlc.intuit.com/questions/1900884-what-are-my-options-for-getting-my-state-refund-or-for-pay...

 

https://ttlc.intuit.com/questions/1901670-how-do-i-contact-my-state-department-of-revenue

 

 

TurboTax gives you an estimated date for receiving your refund based on a 21 day average from your date of acceptance, but it can take longer.  “21 days”  is not a promise from TurboTax or the IRS. 

 

 

 

First, check your e-file status to see if your return was accepted: 

https://turbotax.intuit.com/tax-tools/efile-status-lookup/

 

Once your federal return has been accepted by the IRS, only the IRS has any control.  TurboTax does not receive any updates from the IRS. Your ONLY source of information about your refund now is the IRS.

 

You need your filing status, your Social Security number and the exact amount  (line 35a of your 2023 Form 1040) of your federal refund to track your Federal refund:   

https://www.irs.gov/refunds

To track your state refund:    

https://ttlc.intuit.com/questions/1899433-how-do-i-track-my-state-refund

 

https://ttlc.intuit.com/questions/1901548-why-do-some-refunds-take-longer-than-others

If you chose to have your TurboTax fees deducted from your federal refund, that will take some extra time, while the third party bank handles the refund processing.

 

https://ttlc.intuit.com/questions/2580357-who-provides-the-refund-processing-service

https://www.irs.gov/refunds/tax-season-refund-frequently-asked-questions

 

https://ttlc.intuit.com/questions/2840013-does-accepted-mean-my-refund-is-approved

 

 

 

 

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Deduction of State Taxes from Feferal Refund

Great clarification!

 

Thank you very much 🙂

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