My wife is a small business owner and we filed her taxes via turbo tax online this year and due to her unique situation she owed a little bit of federal taxes but had a nice refund from the state due to overpaying on quarterly payments.
We were hoping to get the refund and pay the smaller balance owed to Federal when it showed up, but it’s as if her refund hasn’t been processed by the state. Meanwhile the bill just hit our mailbox from the IRS for the federal owed.
My question is, does the federal need to
be paid for state to be processed? Turbo tax showed “accepted” for both but it’s been a very long time to have nothing come from the state and online it’s not showing a refund owed. We live in South Carolina if that helps!
appreciate any feedback or advice, as we would prefer to not take funds from other means than just the state refund.
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Federal and state tax returns are processed separately by completely separate entities. The IRS is not paying any attention to whether your state has processed your state return, nor is the state paying any attention to whether your federal return has been processed. Unfortunately, you are late to pay your federal tax due if you did not pay by the April 15, 2024 deadline, so you are subject to owing interest to the IRS now.
Federal and state refunds come from completely separate entities, There is no rule as to which one will come first or how much time there will be between their arrivals. Some states process returns quickly and some are very slow.
STATE RETURN
Make sure your state return was accepted: https://turbotax.intuit.com/tax-tools/efile-status-lookup/
To track your state refund:
https://ttlc.intuit.com/questions/1899433-how-do-i-track-my-state-refund
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