Question

I initially chose to pay the federal taxes due by payments, but I didn’t realize it would take my state refund out of the money I owed. Can I change my payment method?

Forum|Forum|3 years ago
February 9, 2023
4 replies
0 views

I really want to change my payment method to pay in full, is it possible to change that since I don’t need to make payments now?

TurboTax Free Edition Online

fanfare

Employee

", is it possible to change that"

make a payment for the entire balance and you will be square with the IRS (after final adjustment for interest)

@leahdeatherage-g

M

mglauner

Are you saying that the IRS took your State Refund? How did you determine that? Is it possible your State Refund was used to pay your TurboTax filing fees? If you didn't previously owe the IRS for back taxes, and you filed requesting a Payment Arrangement, they would not normally take your State Refund. If you did owe back taxes, though, they may have, but you should receive a letter from them to that effect.

If you have already filed and your return has been accepted by the IRS, you can't change your Payment Method. In this case, if you elected to make payments on Federal Tax due, you will receive a letter from the IRS confirming your payment arrangement. If you pay your Balance Due at that time, you won't need to make any further payments to the IRS.

Here's more info on IRS Payment Options.

F

freenet_2k

TT did the sane thing to me. I owed $460 federal. The state owed me $600.

I requested to make payments to pay federal.

TT automatically deducted the amount of federal tax I owed from my state refund amount and I'm receiving $140 from the state.

I didn't expect that to happen. I wanted to use the $600 to pay a large utility bill I have due but nope. TT auto paid my fed tax owed.

At least that's what it showed me at the end after I filed electronically. Unless the total is just showing the amount I would get back IF I paid for the federal from my state refund but that's not what it looked like to me.

I don't think TT should make that decision unless it's a law?

this is the second year in a row I've been disappointed after doing my taxes woth Turbo Tax. I usually love it but I feel like the changes they are making are getting worse.

DoninGA

Employee

@freenet_2k A tax refund cannot be used to pay taxes owed for the current tax year, ever.

What you saw on the TurboTax Tax Home web page was a mathematical expression showing you the Net Refund. It in no way means that you are not going to receive your full state tax refund from the state and it means that the taxes owed will be paid by you based on how you selected to pay the taxes owed.

We see this type of issue hundreds of times on this forum and the Net Refund on the Tax Home web page confuses and angers many users of the TurboTax. Bottom line is nothing has been deducted or paid from the tax refund.

O

Opus 17

Employee

First, TurboTax cannot take your state refund and apply it to a federal tax owed. It’s impossible. Your state refund is processed and paid by a completely different agency and TurboTax has absolutely no authority to go into your bank account, withdraw your state refund, and send it to the IRS. The IRS does not have the authority to confiscate your state tax refund either, because federal debts or separate from state debts. So, you must have misunderstood something.

Second, if TurboTax prompted you to print for payment vouchers, those are for estimated taxes for 2023, not your current 2022 tax due. If you owe substantial amount for 2022, TurboTax will print suggested tax payments for 2023 so that you can be paid in full and not owe any penalties. However, the estimated vouchers are not for your 2022 taxes owed.

You owe your full federal tax bill by April 18. If you don’t want to pay it through TurboTax now, you can select “I will pay by check“ and then you can make your own separate payment arrangements. You can pay online at www.irs.gov/payments, and you can pay in full or you can make partial payments. If you want a payment plan, you have to apply for that directly on the IRS website and there is a non-refundable application fee. If you think you can pay in full by August, it is usually better to just pay when you can rather than request a payment plan, because the nonrefundable application fee for the payment plan is probably going to be higher than the interest you would owe on your late payments.

VolvoGirl

Employee

Let's start over. Did you set up a payment plan with the IRS? Or are you seeing the 4 quarterly

payment slips Turbo Tax printed out? Those are 1040ES slips.

The 1040ES are estimates for next year. The 1040ES quarterly estimated tax payments DO NOT get sent to the IRS or state with your return. So they won't be expecting them. They are optional to pay. Turbo Tax is very conservative and doesn't want you to owe too much next year. They might have printed out if you got a one time large income this year. Like if you took a IRA or 401K distribution. You can ignore them. You might want to adjust your withholding at work so you won't owe too much next year.

Your tax due is a Single 1040 V voucher unless you entered your bank account for the IRS to pull it out.

As for the state refund, At the end Turbo Tax just shows you the net federal and state combined. But that is only for your info. You will still get the full refund and need to pay a tax due.