How can I resolve this? I received a call from the IRS saying I still owe $68 to the state but it should have come out of my refund. I paid the $40 fee. Help!

[Rainman12 · Accepted solution]

No. State tax payments Never come out of your IRS refund. They are your responsibility to pay when you file.

[mjholman88]

I don’t think you understand. There is an option to pay the state tax with your refund for $39.99 on TurboTax when you file.

[Rainman12]

Nope; Option applies only to paying TurboTax fees out of Federal refund.

[xmasbaby0]

The IRS does not call you.. And the IRS does not care about your state tax.  The IRS is only concerned with your federal tax.