Discussion:Owe Federal - Refund State
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Discussion Forum Index --> Tax Questions --> Owe Federal - Refund State
| 9 March 2006 | |
| Ok - I am not sure if this is the correct forum, but I need to know if I am missing something. We consistantly owe federal taxes and receive a refund from state. Some years it is close, some we end up paying some out. However, I have not come across a single other person that has this issue. I live in Maryland, was hit with AMT this year, and it seems to never go away.
Is this common (not AMT,the owe federal and get a refund from state)? Am I missing something on my federal that would cause such an outcome? Thanks! Mike | |
| 9 March 2006 | |
| Balance due or refund is merely a function of what you've paid in.
If you increase your federal withholding you will get your refund, but your overal liability won't change. | |
Sierrafc.com (talk|edits) said: | 9 March 2006 |
| Have you checked your withholding allowances? If they are the same for Fed and State I would be cautious. Usually they are quite different...especially if you are itemizing. | |
DR BRISKET (talk|edits) said: | 9 March 2006 |
| Oftentimes, also, taxpayers with children under the age of 17 will receive the child tax credit of up to $1,000 per child on their federal returns. I practice in Kansas which does not have a corresponding state child tax credit. Similiar situations apply to educational and other federal credits that do not flow through to a state return. In several cases, I have had my clients claim extra state withholdings to made up for these kinds of differences. | |
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