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posted Jan 5, 2022 10:12:14 PM

Why did Maryland take our tax return? Why do they say we owe them taxes for 2019 and 2020? Elizabeth Fonseca

We have been with turbo tax for 8 years and Marlayand said we owe taxes for 2019 and 2020 Why did they take our refund from2020? Elizabeth Fonseca

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3 Replies
Employee Tax Expert
Jan 6, 2022 6:19:34 AM

You would need to contact the Maryland Department of Revenue to find out why?  You can reach them at one of the numbers below, depending on your location. 

 

Income Tax Information410-260-7980 from Central Maryland1-800-MD-TAXES (1-800-638-2937) from elsewhere in Maryland Maryland Dept of Rev contact

 

Level 15
Jan 6, 2022 6:37:35 AM

None of us can answer that, since we users have no access to what you did for those years.

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Possibilities:

1)  You had a Federal refund and "thought" some of that was going to pay your state taxes due? NOOOO, you can't do that. It's not allowed.  You have to pay your state taxes entirely separately from what's on your Federal tax return.

 

2)  You filed MD, but thought the MD tax was going to be paid by D.Debit or CrdtCd....but wasn't.  Yoru proof of payment would be your own monthly Bank or CrdCd statements....maybe you put in the wrong account number, or maybe MD Doesn't allow a D.Debit when you e-file, and you had to pay MD separately....but failed to do so.

 

3) You filed MD both years, and paid, but failed to report ALL your income....MD discovered this and changed your tax return later to bill you for what you missed filing.

 

4)  You (or spouse) worked in a neighboring Reciprocal tax state (VA, WV, DC, PA) and somehow messed that up....like claiming a tax credit for taxes paid to one of those 4 states (yeah, DC isn't a state, but is treated as one for tax purposes).

 

Without more details about exactly what happened, it's tough to hazard an accurate reason.  You need to check thru what you filed, and what MD claims "in detail"  .   You need to make sure your original 2019 MD tax return was actually "accepted" first.  ( 2020 is probably OK, since they couldn't have grabbed some of your 2020 MD "refund" if it hadn't first been e-filed and accepted. )

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Reasons #1 $ #2 above happen quite a bit every year to a number of folks who are confused about how payments work for their state.

 

(and... terminology: they didn't take your return....they took your "refund".  A tax "return" is all the paperwork/data you send to them, irrespective of whether it is supposed to be a refund, or more taxes owed.)

 

 

Level 15
Jan 6, 2022 7:04:47 AM

Unfortunately, the state does not notify Turbotax when it does this.