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Discrepancy between Federal "total tax" and "tax liability" on the same page

I noticed a discrepancy on the explainWhy page for my Federal return that could mean the difference between owing tax and getting a refund, and I'm not sure I understand what is happening.

 

When I click on "Why do I owe $N?", the text on the page states "The $N you owe comes from the $Y of total tax on your return, minus the $Z of tax you already paid and the $772 in credits you qualify for so far."

 

However in the table breakdown, it shows my total tax liability is not $X but ($X - $3000). If my tax liability is indeed $X - $3000 instead of just $X, I would receive a refund rather than owing tax. I'm not sure why TurboTax is indicating two different amounts for my total tax liability on the same page.

 

Anyone else experience this or know what's happening here?

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4 Replies
MonikaK1
Expert Alumni

Discrepancy between Federal "total tax" and "tax liability" on the same page

If you are looking at different explanation screens rather than the tax return, this may account for the confusion. For example, some screens show you the total refund for Federal and State together, and others show the refunds separately. 

 

The Federal and State tax agencies issue refunds separately and your TurboTax fees are taken from the Federal refund if you elected to pay them by refund. In addition, the bank (Santa Barbara Tax Products Group, or SBTPG) may charge an additional fee for handling the payment by refund. The fee is mentioned on the screen where you elect to pay by refund. See this help article for more information.

 

You can view your entire return or just your 1040 form before you e-file to see how your taxes were calculated and to preview the forms that TurboTax has prepared from your entries. In TurboTax Online:

 

  1. Sign in to your TurboTax account
  2. Open or continue your return
  3. Select Tax Tools from the menu (if you don't see this, select the menu icon in the upper-left corner)
  4. With the Tax Tools menu open, you can then:
    • Preview your entire return: Select Print Center and then Print, save or preview this year's return (you may be asked to register or pay first if you choose this option)
    • View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu
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Discrepancy between Federal "total tax" and "tax liability" on the same page

Thanks for your reply. 

 

I was not looking at different explanation screens. I was looking at one page in Turbo Tax that showed two different figures for my tax liability and total tax, not the size of my tax refund or tax owed.

 

It seems the answer is to look at my raw tax documents and try to figure it out myself.

 

Thanks,

Adam

Discrepancy between Federal "total tax" and "tax liability" on the same page

I'm having the same problem. Did you end up finding the answer?

CatinaT1
Expert Alumni

Discrepancy between Federal "total tax" and "tax liability" on the same page

We'd love to help you complete your tax return, but need more information. Can you please clarify your question?

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**Mark the post that answers your question by clicking on "Mark as Best Answer"
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