Has anyone had a similar experience? I paid TurboTax to file my taxes. Does some of the money go to paying actual taxes to the state/fed? Why do I owe the state money?

[satatman]

I have filed all my taxes through Turbotax since I was 18 and haven't gotten a letter from the state saying I owe them money. I assumed this is because the part of the payment I made to Turbotax goes to the state. Although I've never owed money to the state until this year which is probably what lead to the confusion. Now that it's been so long I don't remember if I actually paid the state through TurboTax. I wish there was the option to pay the tax through TurboTax if there wasn't already

[Critter-3 · Accepted solution]

You misunderstood  the screens in the FILE tab of the program ... first you pay the TT fees for the use of the program to complete a return that can be filed. None of the TT fees pays your state taxes.  

You can not have a state tax due deducted from a federal refund. Or federal tax due from state. NEVER. Federal and State are completely separate. You can only have the Turbo Tax fees (for federal and state) deducted from a federal return and there is an Extra 39.99 Pay with Refund Fee for that.

And a lot of states will not let you pay directly from your bank account like the federal.

So you need to mail in a check or go to the state's website to initiate a payment.

Your only proof of payment is your bank statement or credit card showing the payment coming out. Turbo Tax only passes your bank account number to the state for the state to take it out of your account. But most states do not let you pay by Direct Debit so you have to mail in a check or go directly to the state's website to pay.

Turbo Tax just shows you a screen at the end showing the Net amount of federal and state combined. But it is just for your own info. You do still have to pay the state yourself separately. See,
https://ttlc.intuit.com/community/state-taxes/help/can-i-pay-my-state-taxes-from-my-federal-refund/0...

Check the printout or PDF of your return; look for the state cover sheet with the Turbotax logo. If you owed tax, it will show the payment information and how/when you decided to pay. Read the state payment instructions carefully since most states cannot be paid from within the TT system and requires additional steps.

https://ttlc.intuit.com/community/refunds/help/what-are-my-options-for-getting-my-state-refund-or-fo...

[DoninGA]

Paying the TurboTax online account fees does not pay state taxes owed.  State taxes owed can Never be paid from a Federal tax refund.

When completing a tax return with the online editions where state taxes are owed, in the File section on Step 2 you were given several options on how to pay the state taxes owed.  You could not have completed the File section of the program without selecting one of the state payment options.

The State Filing Instructions page included with your state tax return will show you how to pay the state taxes owed.

To access your current or prior year online tax returns sign onto the TurboTax website with the userID you used to create the account - https://myturbotax.intuit.com/

Scroll down to the bottom of the screen and on the section Your tax returns & documents click on Show.  Click on the Year and Click on Download/print return (PDF)

[satatman]

Thank you for all your knowledge @Critter-3  and @DoninGA . This makes a lot more sense. Hopefully this helps some other people out there too. I didn't realize that I might need to send a check in to my state. Being overseas makes it all the more difficult to manage this stuff. Again all the information is truly appreciated, I hope you all are staying safe. Cheers! 

[fanfare]

if you never got a letter,

a) you never owed anything.

b) the state has a wrong address for you or you are not getting your mail delivered.

In my state, I can go online and check my balance to verify it is zero.

You should be able to do the same with your state.