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New Member
posted Apr 18, 2024 5:10:08 AM

I paid my state tax due with my bank account and Turbo Tax took it out of my federal refund. How can I get that corrected?

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2 Replies
Expert Alumni
Apr 18, 2024 5:21:22 AM

No, TurboTax didn't take money out of your federal refund to pay your state taxes. 

 

If there's money missing from your federal refund, it isn't because of that. There are many reasons your refund may not be the amount you thought you were going to get.

 

First, if you owe the IRS back taxes, they will take it from your refund. If that is the case, the IRS will send you a letter explaining exactly how much they took and where it was applied.

 

Since it's past the tax deadline now, you may want to call the IRS and ask them about your tax refund. Follow this link for contact info. 

 

Second, if you owe certain state and federal debts, you may have had a Treasury Offset to pay the debt. Click here to  contact Treasury Offset if you think that may be the case.

 

If you made an easily verifiable mistake on your tax return like entering a figure wrong on your W-2, the IRS may have corrected it before sending you your refund. If that is the case the IRS will send you a letter explaining the change. 

 

If you requested a refund advance, or asked that your fees be paid from your refund, and you owe the bank a debt, they may have taken it from the refund. You can contact TPG customer service, follow this link for more.

Level 15
Apr 19, 2024 6:20:47 AM

The “summary” given to you by TurboTax must have confused you.  That summary just nets out the difference between a refund you are getting and an amount you owe.   Or it adds two refunds or tax “due” amounts together.

 

 

The federal and state treasuries are completely separate from each other.  

 

Your state tax due cannot be paid from a federal refund.

 

And….your federal tax due cannot be paid from a state refund.  

 

Neither refund can be used to pay the amount due to the other one.

 

If you owe tax due, you have to pay it yourself by the filing deadline on April 15, 2024.