On the payment page, there is an entry after Federal and State E-file costs that says, "Your Total Refund which combines my Federal tax owed and my State tax refund into one amount. Does this imply that Turbo Tax will pay my Fed tax owed from my State refund amount?
No. the program shows the amount of refund received after your tax bill has been paid for informational purposes. The IRS and state tax departments each maintain their own, separate tax collection systems. Therefore, you can't apply your state refund to pay off your state taxes.
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