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Realartist20
Returning Member

why do i always owe state taxes but not federal in North Carolina

Hi

I am a retired North Carolina State Employee. I and wondering why I always have to pay state tax after filing but get refund from Federal

I have 1 for withholding for State

and 2 for withholding for Fed

But every year i owe for state? This year I even owed more for state than last year!!!

I did make more interest on banking money markets CD this year.

Am I doing something wrong????

 

I hate to give up on using Turbo Tax ut if I'm not filling out correct?

 

I also collect SSA

 

Susan

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4 Replies

why do i always owe state taxes but not federal in North Carolina

WHY DO I OWE STATE TAX?

We cannot see your tax return.  The most common reason for owing state tax is that you did not have enough state tax withheld from your paychecks during the year.   Double check all of the amounts you entered from tax documents such as your W-2's---look carefully at boxes 16 and 17.  Look at all amounts entered from any sort of 1099's you entered.   Look for misplaced decimals and extra zeros.  Print a copy of 2023 and 2024 state returns and compare them side by side, line by line to spot the difference(s).

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Realartist20
Returning Member

why do i always owe state taxes but not federal in North Carolina

My 1099-R says 38.52 state tax withheld for year

313.08 for fed

 

why do i always owe state taxes but not federal in North Carolina

NC does not tax Social Security.   It seems that you are not having enough tax withheld from your other retirement income to meet your state tax liability if you end up owing the state each year.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Realartist20
Returning Member

why do i always owe state taxes but not federal in North Carolina

Thanks

The only income is get is from the state retire job and SSA.

Maybe I need to have an additional amount taken out?

 

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