TurboTax is using ALL my withheld taxes as deductions. I know STATE taxes withheld are deducted on the federal return but TurboTax is deducting BOTH federal and state?

[CherylW · Accepted solution]

That doesn't sound right, Turbo Tax follows all laws and knows what can and can't be subtracted.

Can you go back into your W-2 input screen and make sure that your federal tax is entered into box 2?

If you're still having problems, post back to THIS thread.

[Wolvie28]

You are correct.  TurboTax did apply the deductions correctly. Apparently it just lists them both together under deductions (which makes it confusing) but correctly uses only the state.  Thanks!