Turbotax has offset what I owe for federal taxes with my state return. Is that correct?

[VolvoGirl · Accepted solution]

No that will not happen.  At the end Turbo Tax does show you the net combined federal and state.  But that is only for your own info.  You will get the full state refund and need to pay the federal either by direct debit or check or credit card.  You can never have a tax due on one deducted from a refund.

[mattso75]

Thanks for the quick reply. When I printed the forms for payment, the 1040-ES shows the adjusted amount to pay (Federal tax minus state return), and the 1040-V shows the full amount owed for federal taxes. It's now confusing which I need to pay.

[VolvoGirl]

Oh, the 1040ES.  Those are not for your tax due.  They are estimated payments for NEXT year so you don't owe again.   Those are optional to pay.  You can ignore them or send in the extra payments.  They are just a suggestion from Turbo Tax.  

[mattso75]

Thanks, that makes sense. I now understand that the ES form is Turbotax's estimated payment for next year. The way the information was originally presented did not make that abundantly clear. 

Thanks for your help!