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Level 2
posted Feb 28, 2023 12:17:46 PM

Why does TT think I have $4,867 in "Taxes paid with state or local tax return"?

This has never happened before this year. My "Other income taxes" figure includes federal withholding that has been done (which I can account for) ... AND ... $4,867 in "Taxes paid with state or local tax return." I can click through to the Tax Payments Worksheet and see the figure there, but I have no idea where it came from. I have rechecked all my income and withholding input. I HAVE NEVER PAID STATE OR LOCAL TAXES. So, TurboTax thinks I'm going to get this giant refund, which is totally false. Help!

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1 Best answer
Expert Alumni
Feb 28, 2023 12:51:39 PM

The program believes you owed state/local taxes from your 2021 return and paid them in 2022.

 

Here is how to correct:

  1. Return to the federal section
  2. Select Deductions and Credits
  3. Scroll down to Estimates and Other  Taxes Paid
  4. Locate Other Income Taxes 
  5. Select Start
  6. Scroll down and see where you have numbers listed. Edit as needed to correct any errors.

4 Replies
Level 2
Feb 28, 2023 12:19:54 PM

On the Tax Payments Worksheet, it's line 23, under heading "Prior Year Taxes Paid In 2022"

Expert Alumni
Feb 28, 2023 12:51:39 PM

The program believes you owed state/local taxes from your 2021 return and paid them in 2022.

 

Here is how to correct:

  1. Return to the federal section
  2. Select Deductions and Credits
  3. Scroll down to Estimates and Other  Taxes Paid
  4. Locate Other Income Taxes 
  5. Select Start
  6. Scroll down and see where you have numbers listed. Edit as needed to correct any errors.

Level 2
Feb 28, 2023 1:13:21 PM

Thank you, AmyC. I feel certain I have stepped through that entire section several times without finding the answer ... however, this time I was able to locate the figure and eradicate it. (I still have NO idea how it got there.)

Level 15
Feb 28, 2023 1:33:22 PM

.....that number would have come in from whatever tax return yoru transferred in from last year's taxes....maybe you transferred in the wrong one.....or perhaps one you were using to test out your future 2022 situation, but using the 2021 tax software.

 

IF you can figure out which tax file you used to initiate the 2022 startup....and still have the 2021 software installed, then maybe you should open that 2021 tax return and check it all out to ensure it is the correct one....there may be other things that transferred that could be wrong.