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Why are my state taxes so much higher than my federal taxes

My daughter has a scholarship that covers her full tuition and room and board.  I've reported the income on her 1040 (not mine), but federal tax is relatively low (around $150) after her standard deduction is applied.  But Turbo Tax computes her Maryland tax as 6 times larger (over $700) than the federal, which seems quite odd.

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4 Replies
Anita01
New Member

Why are my state taxes so much higher than my federal taxes

Did she have any tax withheld fr MD during the year?  Did you go through the MD program and answer all the questions?

Why are my state taxes so much higher than my federal taxes

NO tax withheld in MD this past yr, and I I did go thru program and answer everything that I’d normally do.  I’ve never seen state tax more than federal, so it just looks odd.
Anita01
New Member

Why are my state taxes so much higher than my federal taxes

State tax can easily be higher than Federal because there are many Federal credits not accepted by the state..

Why are my state taxes so much higher than my federal taxes

It's not related to credits because there were none on her federal form, but I wondered if it was either related to the change in the tax law, or to a difference between scholarship income and other kinds of income.  Her standard deduction on the federal form this year was high enough (over $8000) that she ended up having relatively low taxable income, but the opposite was true on the Maryland form (where her standard deduction was only around $1800).  That never happened with my other children when they started earning money.
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