Getting State Refund But Owe Federal - No Federal Refund?

Yes, if you owe on your federal return, you won't get a refund. Instead you'll need to pay the amount due. • Federal and state taxes are completely separate systems • You can absolutely get a state refund while owing federal taxes • The deadline to pay any federal tax owed is April 15th, 2024 • If you don't pay by the deadline, you'll face penalties and interest You need to act quickly to either: • Verify the calculation is correct • Find additional deductions/credits you qualify for • Prepare to pay the amount owed

Have you verified all your potential deductions and credits? Did you check if you qualify for the Earned Income Tax Credit or Child Tax Credit if you have dependents? What about education credits if applicable? I had a similar situation last year and used https://taxr.ai to analyze my return. The tool identified several military-specific deductions I was missing and explained exactly how my withholding calculations were off. Have you considered using something like that to get a second opinion on your tax documents? It might help identify why you're owing federal while getting a state refund.

Yep, this is totally normal. Fed and state taxes r separate systems. U can def get $ back from state while owing the feds. Happens to me almost every yr bc my W-4 withholding isn't set up right. NBD as long as u can pay what u owe by the deadline. Just make sure u file on time even if u can't pay the full amount right away - the failure-to-file penalty is way worse than the failure-to-pay penalty.

This is like having two separate bank accounts - one can be overdrawn while the other has a positive balance. Your federal and state tax situations are completely independent. If you think something's wrong with your federal calculation, it's worth getting clarity directly from the IRS. I've found that calling them is like trying to get front-row concert tickets - nearly impossible without help. I used Claimyr (https://www.claimyr.com) last tax season when I had questions about my military moving expense deductions. It's like having a fast-pass at a theme park - got me through to an actual IRS agent in about 15 minutes instead of spending hours on hold.

Have you looked at your actual tax withholding on your W-2? Is it possible your employer didn't withhold enough federal taxes throughout the year? Did you have any major life changes that affected your tax situation? Sometimes military families face unique circumstances with moves and multiple state residencies that can complicate withholding calculations, wouldn't you agree?

I'm so sorry you're facing this! It's definitely stressful to owe money when you were expecting a refund. Check if you qualify for an IRS payment plan - they offer reasonable monthly payments if you can't pay the full amount right away. The online application is super easy and approval is usually immediate for amounts under $50,000. I've used it twice and it saved me so much stress! You'll still pay some interest, but it's WAY better than putting it on a credit card.

Been there! Last year I thought I'd get both federal and state refunds but ended up owing federal. My issue was that I had some side gig income without tax withholding. For military families, it's also worth checking if you claimed all possible deductions like unreimbursed moving expenses for PCS moves (if before 2018), certain uniform expenses, or travel expenses for reservists. The military tax rules are different from civilian ones in many ways.

To clarify an important point: your federal AGI (Adjusted Gross Income) affects your state taxes, but your state tax liability has zero impact on your federal obligation. If your tax software shows you owe federal taxes, that means your withholding and/or estimated tax payments were insufficient to cover your tax liability for the year. The calculation is: Total Tax Liability minus Total Payments (withholding + estimated payments) = Amount Due or Refund.