Question

Federal Tax Payment deducted from State tax refund

Forum|Forum|2 years ago
August 12, 2023
1 reply
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A federal tax payment due and a state tax refund were calculated. When I go to e-file both returns, the screen shows a net amount receivable. Is the federal amount being deducted from the state refund?

e

SteamTrain

Employee

@mooremj

NO...you will have to pay the Feds entirely separately. Either with a D.Debit form your bank when you go thru the filing steps, or directly on the IRS's payment website. Far too many people get confused by that, and we all wish TTX would change that page display to make it perfectly clear.

That NET screen is just an effective result of both. Neither can the IRS's refund, nor the State's refund be auto-directed to pay the other tax agency.

Look for the payment step selections when you continue thru the e-file process.....or if you decide to file on paper yourself, by mail, you write a check,

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*