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Why does TurboTax show a Federal refund equal to our total Federal taxes withheld in 2020? And why does our Michigan refund exceed our State tax withheld in 2020?

Fed refund of $14,725 equals Federal taxes withheld and Michigan refund of $1,879 exceeds Michigan tax withheld of $378.
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3 Replies
BillM223
Expert Alumni

Why does TurboTax show a Federal refund equal to our total Federal taxes withheld in 2020? And why does our Michigan refund exceed our State tax withheld in 2020?

We in the Community do not have access to your private tax data, but let me make these suggestions.

 

If you had tax credits (whether current year or carried over from 2018) that added up to equal the tax assessed, then you would have no tax due and would have your entire federal withholdings refunded to you.

 

What sort of credits? American Opportunity Credit (college education), Child Tax Credit, solar panel credit (especially if carried over from last year), etc. Also check to see if you indicated that your refund from last year was to be carried over to this year.

 

As for your state, some states also offer refundable credits. A refundable credit is a credit that can be refunded to you over and above the amount of your withholdings. An example (on the federal level) is the Earned Income Credit - some states offer this credit also at the state level.

 

On your 1040, look carefully at lines 16 through 34 - somewhere in the area is the answer to your question (on the federal return).

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JWela1ne
New Member

Why does TurboTax show a Federal refund equal to our total Federal taxes withheld in 2020? And why does our Michigan refund exceed our State tax withheld in 2020?

The state tax section is not picking up state withholding from my 1099s. How do I enter them?

 

Irene2805
Expert Alumni

Why does TurboTax show a Federal refund equal to our total Federal taxes withheld in 2020? And why does our Michigan refund exceed our State tax withheld in 2020?

There is no entry screen for Form 1099-S.   All entries have to input manually in their appropriate place in the return.

 

Enter the state withholding from the 1099-S as an estimated tax payment, following these steps:

  1. Click on Federal Deductions & Credits.
  2. In the Estimates and Other Taxes Paid section, click on the Start/Update box next to Estimated Tax Payments. 
  3. On the next screen, click the Start/Revisit box next to State estimated taxes for 2020.
  4. On the screen, How much did you pay in state estimated taxes, select the state from the box and enter the date paid and amount from, the 1099-S.

@JWela1ne

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