Question

Turbo took out some money from my federal income tax, and I don't understand why

Forum|Forum|4 years ago
February 9, 2022
2 replies
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TurboTax Deluxe Online

Employee

Did you request to have the TurboTax account fees paid from the federal tax refund? If so, there was a third party service charge of $40 for this optional service.

If you requested to have the TurboTax account fees deducted from your federal tax refund, the IRS will send the refund to a third party processor to have the fees and the service charge deducted. The third party processor will deduct the TurboTax fees plus the service charge and then attempt to direct deposit the remaining refund balance into the account that you entered on your tax return.

For the status of your tax refund you will need to contact the third party processor, Santa Barbara Tax Product Group, using their website - https://www.sbtpg.com/

Tax Products Group Contact Information - https://help.sbtpg.com/hc/en-us/articles/230084587-Contact-Information

If you did not request this option then the IRS adjusted your tax refund and you will be receiving a letter in the mail from the IRS explaining the changes which reduced your federal tax refund.

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xmasbaby0

Employee

Please explain what you saw---or think you saw. When do you think money was taken out of your refund? we cannot see your tax return or your screen.

If you are referring to that "refund monitor" in the corner of the screen, that amount changes as data is entered---and you cannot take it seriously until all of your information has been entered.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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user45009Author

My tax refund is supposed to be 1606.64, but it was reduced to 1347. about 260 was taken.

This was what my screen showed. "Your federal refund of $1,347 comes from the $1,616 of tax you already paid, minus the $269 of total tax on your return." I genuinely don't understand what this means.How is the $269 of total tax on your return calculated?

Based off your $2,682 of total taxable income and your Single filing status, the regular income tax you're supposed to pay for the year is $269. This is not a tax bill. These numbers are used to calculate your effective tax rate.

still so confused

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RaifH

Your tax is based on your taxable income. The taxable income is derived from taking all your income and reducing that by any deductions. For most people, that is the standard deduction. Once the taxable income is derived, you owe 10% income tax on the first $9,950 if your filing status is single.

The $269 tax reduces what was already withheld, so you do not get the entire amount refunded to you.