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February 16, 2021

Generally, the reason you owe state taxes this year is because you did not pay in enough through your paychecks to cover the state income tax you actually should have paid in.

 

  • Contact your HR department or payroll department and fill out a new state withholding form to avoid owing in the future.

There may be several other reasons why you may have a shortfall. The following are some suggestions to help you find the reason why.

  • Double check the amounts you entered into TurboTax to make sure they were entered correctly.
  • Do a state income tax return line by line comparison to see what is different this year versus last year.  
  • Your 2020 State Tax Withholding was lower than 2019.  
  • You deferred less income into your Employer-Sponsored Retirement Plan or Flexible Savings Plan.
  • You didn't qualify for a tax credit you received last year (or the credit amount decreased).
  • You removed a dependent.
  • You changed your filing status.
  • If you itemize, your Itemized Deductions are lower this year. or the standard deduction is lower.
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