A lot depends on what is actually in that prior year tax return as a refund....and what state is involved.
Commonly people "think" their refund was lower than TTX transfers...but it really isn't.
As an examples:
1)...I get $300 refunded to me from my state last year.....but my transfer to this year shows $500. Well, the $500 is correct. Why, because I donated $200 to two check-off charities on the state tax forms, and the refund BEFORE those checkoffs is what has to be used.
2) Another thing that has to be added-back to refund you actually received...are any $$ assessed for state "Use Tax". Those are sales taxes and not income taxes, so if you had any assessed in the state forms, you have to add those $$ to your pocketed refund too.
3) Then, say I let the state keep a few hundred as prepayments against the next year's taxes...then those $$ have to be added back too.
TTX automatically does calculate those correctly.
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when in doubt...get your state Refund 1099-G form your state and see what that indicates. A lot of states no longer mail them out, but let you get them Online on the state tax website.
(penalty assessed? sorry add that amount back too. Might be a few other things....could there still be a TTX transfer error...yeah, but rarely happens. Someone with detailed information of everything on your State tax form would have to get involved... https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632 )
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
