Hello, My federal taxes due are $534. My MN state tax refund is $1,461. These are displayed in the upper left hand corner. When I go to submit and file my MN state taxes the amount for my MN refund changes to $927. $1,461(MN Refund Amount) - $534(Fed Due Amount) = $927(New MN Refund Amount) Is my federal tax due being paid with my MN state refund? If so, why was I asked to enter my bank account number and choose a date to pay my federal tax due of $534 if my state refund is already being used to pay my federal tax due? Will it be withdrawn from my bank account on April 14 like Turbotax guided me to do? It seems like I am being charged twice. Please let me know what the deal is and how it can be fixed. Thank you.
No. At the end Turbo Tax shows you the net combined amount for federal and state but that is only for your own info. You will still get the full refund and you need to pay any tax due.
Hi VolvoGirl,
Thank you for your answer. I spoke with people at TurboTax twice over the phone and couldn't get an answer. This scared me for a moment and is a confusing way to display things, especially since the people at TurboTax told me federal taxes could not be paid with a state refund and vice versa. It scares us poor people for whom $534 is a lot of money! lol I appreciate your help.
Thanks again,
Ben