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February 4, 2021
Question

My Federal refund is the exact amount less my state amount I owe. Why am I being asked for a date I want it taken out of my account?

  • February 4, 2021
  • 1 reply
  • 0 views
It was already deducted from my Federal Refund!

1 reply

JohnB5677
February 4, 2021

No, TurboTax does not deduct state taxes that you owe from your Federal tax refund.

 

Because the IRS and State Tax Departments each maintain their own, separate tax collection systems, you cannot use a Federal Refund to pay what you owe for State Taxes, nor the other way around.

 

You are asked to enter a date because the amount that you owe to the state will accumulate penalties and interest until it is paid.  This allows TurboTax to estimate the additional amount (if any) you may have to pay.

 

 

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