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February 18, 2024
Question

If I paid my federal tax out of pocket, why is TurboTax showing it being taken out of my state refund?

  • February 18, 2024
  • 1 reply
  • 0 views
For example, hypothetically I owe $300 in federal taxes but I’m getting $500 back from state. I paid the $300 federal out of pocket but turbo tax shows that I’m getting $200 back. Wouldn’t I get my full state return if I paid the federal already?

1 reply

Employee
February 18, 2024

@ bffe50688c71 wrote:
For example, hypothetically I owe $300 in federal taxes but I’m getting $500 back from state. I paid the $300 federal out of pocket but turbo tax shows that I’m getting $200 back. Wouldn’t I get my full state return if I paid the federal already?

Are you referring to a summary screen that shows the results of both returns?  That's such a confusing screen each year that a lot of people ask about it in the forum.   Federal taxes for 2023 are not paid out of your 2023 state return; that's not even possible.   If you are referring to a summary screen after you've prepared your returns, TurboTax is mainly showing what you have in your pocket at the end of the day.  i.e., they are adding the 2 returns together and merely showing the net results of both returns.  In your example given above:

 

Paid $300 for Federal tax

Received $500 in refund from State

Net available in your pocket $200