I owe federal taxes and I am due a refund for state taxes. I am trying to e-file both my federal and state taxes. I have scheduled a debit payment from my checking account for my federal taxes for this Friday, April 7th, Why does Turbo tax tell me that my refund total is only my State refund minus my federal debt. I do not want federal to debit my bank account on April 7th what I owe and then also have my federal debt deducted from my State refund. How do I make sure this does not happen? Should I just not e-file my federal taxes??
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What you are seeing on the Tax Home web page is just an arithmetic calculation of the Net refund and the taxes owed. It in no way indicates that the taxes owed will be paid from the tax refund.
Your federal tax due will not affect your state refund. Turbo Tax thinks it is doing you a big favor by netting the two amounts and then informing you what the net result is. It is confusing to some people.
You can still plan on the scheduling your direct debit and your state will not deduct your federal tax due amount. These are two different tax agencies that do not interface with each other. You can still efile both returns safely with complete peace of mind knowing you won't be paying taxes twice.
Thank you so much!!! Just wanted to be sure.
Thank you so much. Just wanted to be sure.
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