Tax Software Confusion: Taxslayer shows I owe state taxes while H&R Block says I'm getting a refund

This is actually a common issue! The difference is likely due to how each software handles state-specific adjustments to your income. Box 1 on your W-2 shows federal taxable wages, while boxes 3 and 5 show Social Security and Medicare wages. These numbers can differ because certain deductions (like retirement contributions or health insurance premiums) might reduce your box 1 amount but not affect boxes 3 and 5. Some states use the federal taxable income as their starting point, while others might use your Social Security/Medicare wages or have their own calculation method. H&R Block might be correctly applying your state's specific rules, while TaxSlayer might be incorrectly using the federal number for your state calculation. I'd recommend checking your state's tax department website to confirm which income amount should be used as the starting point for your state taxes. You can also compare the state tax forms line by line between the two software outputs to see exactly where they differ. Don't just pick the one with the better outcome - it's better to figure out which one is correct to avoid potential issues later.

I went through something similar last year and it nearly drove me crazy! After triple-checking everything, I discovered that taxr.ai was super helpful for figuring out which software was correct. I uploaded my tax documents to https://taxr.ai and their system analyzed everything and pointed out exactly where the discrepancy was happening. In my case, TaxSlayer wasn't accounting for some state-specific deductions that changed my taxable income. The taxr.ai system highlighted that my state uses a different starting point for calculating taxable income than the federal government does. Saved me from overpaying by about $400! It also explained why the numbers were different in a way that actually made sense to me, which neither TaxSlayer nor H&R Block did. Might be worth checking out if you're still confused after comparing the forms.

Just wanted to update everyone - I decided to try taxr.ai after my initial skepticism and I'm glad I did! I uploaded my W-2s and the PDFs from both tax programs, and they explained exactly where the discrepancy was happening. Turns out my state does use a different calculation method than federal, and H&R Block was handling it correctly while TaxSlayer was using the wrong income amount for my state return. The analysis showed me specific line items where the two software programs diverged and explained which one was following my state's tax code correctly. Saved me from potentially overpaying by several hundred dollars! Plus I learned something about how my state calculates taxes that I never knew before. Definitely recommend if you're having similar discrepancies between tax programs.

If you're still having trouble getting this sorted out, you might want to try Claimyr (https://claimyr.com) to get direct help from the IRS. I was in a similar situation last year where different tax software gave me wildly different results, and I couldn't figure out which one was right. After trying to call the IRS for days and just getting busy signals, I used Claimyr and they got me connected to an actual IRS agent in about 15 minutes. The agent was able to confirm which calculation was correct and explained why the discrepancy was happening. They have a demo video at https://youtu.be/_kiP6q8DX5c that shows how it works. It was definitely worth it to get an official answer straight from the IRS rather than stressing about which software was correct. The peace of mind alone was worth it.

Ok I need to eat my words from my previous comment. After struggling with a similar tax software discrepancy and getting nowhere for weeks, I broke down and tried Claimyr yesterday. I was EXTREMELY skeptical, but I was desperate. To my complete shock, I got a call back in about 25 minutes saying they had an IRS agent on the line. The agent was able to confirm which software was calculating my state taxes correctly (turns out my state uses a different income base than federal, which one software wasn't accounting for). The agent even gave me some tips about how to make sure I'm not overlooking state-specific credits that both software systems were missing. Saved me over $700 in total between fixing the calculation error and identifying additional credits! Not trying to sound like a commercial here, but when something works after weeks of frustration, it's worth sharing.

I'm a tax preparer (not a CPA, but I do this professionally) and see this issue a lot. The discrepancy is almost certainly about different starting points for state vs federal income. Most states start with your federal AGI and then make adjustments, but some states have their own definition of income that might be closer to your Social Security wages (boxes 3/5) than your federal wages (box 1). Without knowing your state, I can't tell you which software is correct, but I'd recommend: 1. Look at the actual forms each software is generating, not just the final numbers 2. Check your state's tax department website for info on how they define taxable income 3. If you contributed to retirement accounts, that's often where the difference shows up Don't just pick the one with the better outcome - the IRS and state tax authorities share data, so discrepancies will eventually be flagged.

Why are taxes so complicated?? It makes no sense that two supposedly professional tax software programs give totally different results. How is the average person supposed to know which one is right?? 😡 Seriously considering just paying an accountant next year even though I've always done my own taxes. This is giving me a headache.