Federal Refund and Owed State Tax
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Returning Member

Federal Refund and Owed State Tax

My Federal refund is $1000 (just a random number) and I owe GA state tax $20 (just a random number as well). My State tax is still pending while my Federal got accepted the day after I filed my tax and it went down to $980 (-$20). I chose to pay the state tax that I owe through Direct Debit on the day that I filed my tax but it hasn’t taken away from my bank account yet. According to Turbo Tax, Direct Debit means the IRS will withdraw the whole entire owed amount from my bank account. So it means that my refund should be still $1000, right?? And the $20 that I owe will be taken out from my bank account. However that’s not the case. On the main page of Turbo Tax app, it says my total refund went to $980 instead of $1000 after my Federal refund got accepted. I also had to pay $120 to TurboTax because of 2020 Federal Tax Return, 2020 State Tax Return and Refund Processing Service which is $40 each and I chose to pay that $120 through my Federal Tax Refund... From what I understand: $1000 (federal refund) - $120 (TurboTax fees) = $880 total refund and the $20 (owed tax from State) will be taken out from bank account. So I guess my question is, why did the money that I owe from State was taken out from my Federal refund and not the fees that I paid for Turbo Tax?

Please explain like I’m 5.

5 Replies
Level 15

Federal Refund and Owed State Tax

Turbo Tax just shows you a screen at the end showing the Net amount of federal and state combined.  But it is just for your own info.  You do still have to pay the state yourself separately.   See,

https://ttlc.intuit.com/community/state-taxes/help/can-i-pay-my-state-taxes-from-my-federal-refund/0...

 

Check the printout or PDF of your return; look for the state cover sheet with the Turbotax logo.  If you owed tax, it will show the payment information and how/when you decided to pay.  Read the state payment instructions carefully since most states cannot be paid from within the TT system and requires additional steps.

https://ttlc.intuit.com/community/refunds/help/what-are-my-options-for-getting-my-state-refund-or-fo...

Returning Member

Federal Refund and Owed State Tax

I chose to pay via Direct Debit. Like what I said it means the IRS will withdraw the whole owed amount from my bank account. I understand that I can’t pay my state tax through my federal refund and there is no option for that when I was filing my taxes. My question is why did the money that I owed from my state was taken out from my Federal refund when I chose to pay Direct debit??? @VolvoGirl 

Level 15

Federal Refund and Owed State Tax

Where are you seeing the State was taken from federal?  Not just at the end when Turbo Tax gives you the net combined amount?  That is only for your info.  You will still get the full refund less any fees you have deducted.  

 

If you have a federal refund the IRS won't withdraw any tax due.  The IRS is only federal.  Your state is separate.  Did you get a State Instruction page saying how the tax due would be paid?  As I said above most states do not accept Direct Debit to pay.

Returning Member

Federal Refund and Owed State Tax

On the app. Like what I mentioned on my original post. After my federal got accepted, the money that I owe to the state was taken out and it shows on my TurboTax app. I also know that Direct Debit is not for every state, however, my state accepts Direct Debit that’s why I chose it. I wouldn’t do it if I’m not eligible. I don’t think you’re understanding me @VolvoGirl 

Level 15

Federal Refund and Owed State Tax

No, you are not understanding me.  You will get the full federal refund.  Ignore the app.  The state tax due is not being deducted from anything.   Wait and see what gets deposited.  Check your actual tax return refund 1040 line 38a.  Does it show the right federal refund?

 

You can ask Turbo Tax,

Contact Customer Service
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https://support.turbotax.intuit.com/contact/

What is the Turbo Tax phone number
https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

 

 

 

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