Taxes were taken out of tax return but my state says I still owe

[VolvoGirl]

You can not have a state tax due deducted from a federal refund. Or federal tax due from state. NEVER. Federal and State are completely separate. You can only have the Turbo Tax fees (for federal and state) deducted from a federal return and there is an Extra 39.99 Pay with Refund Fee for that. And a lot of states will not let you pay directly from your bank account like the federal. So you need to mail in a check or go to the state's website to initiate a payment. Your only proof of payment is your bank statement or credit card showing the payment coming out. Turbo Tax only passes your bank account number to the state for the state to take it out of your account. But most states do not let you pay by Direct Debit so you have to mail in a check or go directly to the state's website to pay.

Turbo Tax just shows you a screen at the end showing the Net amount of federal and state combined. But it is just for your own info. You do still have to pay the state yourself separately. See,
https://ttlc.intuit.com/community/state-taxes/help/can-i-pay-my-state-taxes-from-my-federal-refund/0...

Check the printout or PDF of your return; look for the state cover sheet with the Turbotax logo. If you owed tax, it will show the payment information and how/when you decided to pay. Read the state payment instructions carefully since most states cannot be paid from within the TT system and requires additional steps.
https://ttlc.intuit.com/community/refunds/help/what-are-my-options-for-getting-my-state-refund-or-fo...

[Antoinette01]

Why do I even owe the state of New Jersey anything 

[JotikaT2]

It depends.

Are you required to file a state income tax return in New Jersey?

If so, you may have earned income but not had enough withheld in your state income taxes on your paychecks.  This could potentially result in a tax liability when filing your tax return.

If you do not live or work within New Jersey, you may not even have a filing requirement there.  If this is the situation, you will need to review your information as entered into the My Info section of the program.  You can find this information in the black panel on the left hand side of your screen.

1. Click Edit to the right of your name 
2. Confirm your input under #2 Tell us the state(s) you lived in
3. Go back to the personal information section, and verify the mailing address and "Other state income" section.  Be sure to answer the question asking "Did you make money in any other states?" to ensure your information is entered correctly.