Why am I being told to pay $119 in state taxes when my W2 states $78.87 in the State Income Tax box?

[CherylW · Accepted solution]

Your tax liability was $119 + $78.87 = total tax liability of $197.87.

If your state return says you owe, it's because you didn't have enough withheld from your paycheck to cover your state tax owed.  You're having to pay to make up that difference.

If you'd like to avoid that in the future, you may be able to fill out a brand-new state withholding form to give to your employer.