I elected to have my old federal taxes be paid by my New York refund. This is evidenced by the small refund that I actually received by New York state. Then I was asked to pay my federal taxes by credit card so I did not think that TurboTax actually used my refund to pay my federal taxes so I went along and paid by credit card. Then I only received a third of my refund which would be the amount left if part of my refund was given to pay my Federal taxes. What is going on and what am I supposed to do about this gross under payment? And please don't tell me I misunderstood anything.

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Carey99

Level 2

Question

Received unexpectedly low NY refund

Forum|Forum|2 years ago
June 8, 2024
4 replies
35 views

I elected to have my old federal taxes be paid by my New York refund. This is evidenced by the small refund that I actually received by New York state. Then I was asked to pay my federal taxes by credit card so I did not think that TurboTax actually used my refund to pay my federal taxes so I went along and paid by credit card. Then I only received a third of my refund which would be the amount left if part of my refund was given to pay my Federal taxes. What is going on and what am I supposed to do about this gross under payment? And please don't tell me I misunderstood anything.

TurboTax Self Employed Online

DoninGA

Level 15

You will receive a letter from NY state explaining what they changed on your state return which reduced the state tax refund.

A state tax refund for the current tax year can Never be used to pay the current tax year federal taxes owed.

xmasbaby0

Level 15

"please don't tell me I misunderstood..."

Sorry---that is what happened --- you misunderstood.

The “summary” given to you by TurboTax must have confused you. That summary just nets out the difference between a refund you are getting and an amount you owe. Or it adds two refunds or tax “due” amounts together.

The federal and state treasuries are completely separate from each other.

Your state tax due cannot be paid from a federal refund.

And….your federal tax due cannot be paid from a state refund.

Neither refund can be used to pay the amount due to the other one.

If you owe tax due, you have to pay it yourself by the filing deadline on April 15, 2024.

If you have federal tax due you can pay by mailing your payment with the 1040V voucher, (which has the address printed on it, having the payment taken out of a designated bank account, or you can pay directly on the IRS website.

https://www.irs.gov/payments

https://ttlc.intuit.com/community/tax-payments/help/how-can-i-pay-my-federal-taxes/00/26212

https://ttlc.intuit.com/community/tax-payments/help/how-do-i-pay-my-irs-tax-due-with-a-check-or-money-order/00/26403

To apply for a payment plan with the IRS

Apply Online for a Payment Plan

You must pay your state tax due using the state’s preferred method of receiving payment. For most states that will be by making a payment to the state’s own tax website, or by mailing a check or money order.

https://ttlc.intuit.com/questions/1901670-how-do-i-contact-my-state-department-of-revenue

And....if NY reduced your state refund, the state will be sending you a letter to explain why the state reduced your NY refund.

TurboTax does not get any feedback from your state after your return is accepted, so no one at TT knows why your state refund was less. Did you owe back taxes, child support, or student loans? Traffic fines, etc.? Or perhaps the state just caught some mistake you made on the state return and corrected it by reducing your refund.

https://ttlc.intuit.com/community/state-taxes/help/how-do-i-contact-my-state-department-of-revenue/00/25573

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**