topic State Taxes in State tax filing

State Taxes

JayBrown — Thu, 26 Mar 2020 16:29:35 GMT

I filed my taxes through TurboTax both state and federal. My state tax was tremendously higher this year than last, by $600. I was issued $514 back by federal, and it claimed I owed $669 to state. Even if that’s correct, why would you withhold the $514, and use it to pay the $669 and leave me to pay the balance. INSTEAD of taking $669 out of my account during a nationwide recession?!? This isn’t right, and I want answers!!

Re: State Taxes

JamesG1 — Thu, 26 Mar 2020 16:46:48 GMT

The IRS issues Federal refund checks.

A majority of the fifty states issue refund checks.

Refund checks are issued from these independent authorities, not TurboTax or one single controlling authority.

Re: State Taxes

JayBrown — Thu, 26 Mar 2020 18:06:58 GMT

That’s still doesn’t answer my question. It just simply shifts the question over to a different entity. I’d like to know why my state tax was so high number 1. And 2. Why they didn’t just bill me for the difference? I only ask because you guys are the tax experts

Re: State Taxes

CatinaT1 — Thu, 26 Mar 2020 18:14:58 GMT

The IRS and State Departments of Revenue are separate entities and do not collect for each other. The IRS will not issue your refund to the state to day any balance due, the IRS does not know your state tax situation.

Without looking at your return it is impossible to know why your state is so different.

These are the most common things that effect your refund or balance due:

Change in Filing Status;
Change in dependents claimed;
No longer have a child, under age 17, to claim the Child Tax Credit
The amount of federal and/or state withholding;
Income based credits, such as the Earned Income credit;
Tax bracket changes

Here is a TurboTax Help Article that will give you more information.