I just completed my federal return and my state taxes reported on my 1099-R are not included in the "credits" in the final results.......how do I correct that?

[ddsprouse22]

On the "2017 deductions and credits" page under "other income taxes" my state and federal taxes are shown totaling $5,552.00 ($3,220.00 Federal and $2,332.00 State) but under the final results..."...here are your 2017 deductions and credits" only the federal taxes, $3,220.00 are included.

[DanielV01 · Accepted solution]

It's correct in the system.  What TurboTax is showing is the total amount of taxes you paid in.  For the Federal Return, only your Federal taxes are counted against your Federal tax due.  Likewise, on the state return, the state withholdings are credited against the State amount due.  However, the state taxes paid in also get calculated for itemized deductions on the Federal Return.  A deduction is different from a credit.  A deduction reduces taxable income, whereas credits reduce the actual tax.  A $1000 deduction, therefore, might only gather a $150 tax savings, but a $1000 credit means $1000 less paid on the taxes.

But TurboTax has the amounts correctly calculated:  Federal tax paid in (credit) goes against Federal taxes and State Tax paid in (credit) goes against State taxes.