Turbo tax is doubling my state tax withholding

[MarilynG1]

When I tested this by entering a W-2 in TurboTax Desktop with New York State Tax withheld, it did not double on the Tax Payments Worksheet.  If you initially tried uploading your W-2, here's how to Delete Imported Data:

1. Open your return.
2. From the TurboTax File menu, select Remove Imported Data.
3. Select the item(s) you want to remove and follow the instructions.

@franciem 

[Liz-NY]

I used online version, and we know how to delete forms if you read previous posts, it doesn't fix the problem.

[Liz-NY]

Gosh, now I am at the situation that I couldn't e-file my state tax return because of this hidden state tax withholding in your program. I have to edit w-2 form to have state tax withholding 0 to avoid the withholding doubled, but now I couldn't e-file, I got error "Returns with state and/or local withholding from sources other than Federal Forms W-2, W-2G, 1099-G and 1099-R". The state and local tax withholding I have is only from W-2 form!!!

[AmyC]

@Liz-NY  You have clearly worked long and hard trying everything. I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the  directions below:

TurboTax Online:

Sign into your online account.

Locate the Tax Tools on the left-hand side of the screen. 

A drop-down will appear. Select Tools  

On the pop-up screen, click on “Share my file with agent.”

This will generate a message that a diagnostic file gets sanitized and transmitted to us.

Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

Open your return.

Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent”

This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.

Please provide the Token Number that was generated in the response.  

[Liz-NY]

I spent another whole day with several tech specialists ( transferred to several "higher-up" techs), and even talked to a CPA from Turbo Tax, just got off phone at 11pm. All couldn't find a way to fix it, they each repeated the steps that I have already gone through, delete W-2 and state return, restart state return, then finally admitted there was a glitch in the system, I got so frustrated, I myself was a software developer and knew if there is a bug in the code, delete and redo can't fix the issue no matter how many times you try...

I just shared my file with agent with state tax withholding changed to zero to avoid huge state tax refund. The token number is 1097243.  Hope you can help to find the solution soon.

I printed out my state return and search for the withholding and found in the worksheet, the number for state tax withholding appears at line 13 "other state tax withholding" in the tax payment worksheets, if there is a way to delete this number, we probably fix the issue.

[Liz-NY]

Finally I found the problem, I searched the same number in Federal return and it was added to one of my 1099-INT when I went through smart check. It doesn't affect the federal tax return, but cause a lot of trouble in state return, yesterday one of the tech specialist instructed me to print the state form and doing that she misguided me to file the return, now I have to amend the returns. I should investigate myself than calling the tech supports all this time.

[wadeheidmann14]

Same issue here except state withholding is getting tripled so can't do the manual workaround.  Help!

[AnnetteB6]

If you would be willing to provide a diagnostic copy of your tax file, we can take a closer look and try to explain what is happening in your return with regard to the withholding amount being tripled.  The diagnostic file will not contain personally identifiable information, only numbers related to your tax forms.  If you would like to provide us with the diagnostic file, follow the instructions below and post the token number along with which version of TurboTax you are using in a follow-up thread.

Use these steps if you are using TurboTax Online:

• Sign in to your account and be sure you are in your tax return.
• Select Tax Tools in the menu to the left.
• Select Tools.
• Select Share my file with agent.
• A pop-up message will appear, select OK to send the sanitized diagnostic copy to us.
• Post the token number here. 

If you are using a CD/downloaded version of TurboTax, use these steps:

• Select Online at the top of the screen.
• Select Send Tax File to Agent.
• Click OK.
• Post the token number here.

@wadeheidmann14 

[Liz-NY]

I suggest you to check income forms (W-2, 1099-INT etc) for state withholding, it might be copied to those forms by mistake when you go through smart check.

[wadeheidmann14]

The issue was related to the state tax being automatically added to 1099-INT. Once removed the value was aligned.

[Kent17]

Hello-

I had the same problem and for me it was an error on my part but easily done and difficult to find after the fact.

When you add a 1099-INT form, if box 17 (of the 1099-INT) does not have a value populated, Turbo Tax will ask you to enter state tax withheld on the Interest.  For myself, I thought box 17 was referring to my W2 so I entered my state tax withheld listed in box 17 from my W2.  This ends up doubling your state tax withheld.  Unfortunately, TurboTax does not pick this up as an anomaly, which it should.  Anyhow, the fix is to delete the 1099-INT and reenter it and if your 1099-INT box 17 has no values, enter 0 and you should be good to go.

I cannot get back the time I spent trying to figure out why my state tax was over stated so I hope this helps someone from spending their afternoon being puzzled.  I will eat my crow and admit user error but Turbo Tax should be better at picking up mistakes.

[LenaRedd]

I already filed and realized this is why taxes are "under review".  I went back through the hard copies and realized the taxes paid are doubled.  What do I do now?? Do I call MO DoR or just wait?