If you over estimate your dependents or choose a filing status that you are ineligible for, then your withholding will always be less then the amount of tax you owe. In a nutshell, over-withholding means you’ll get a refund at tax time. Under-withholding means you’ll owe.

When it says federal tax due does that mean I owe?

Federal tax due near the top of your screen means you owe that amount to the IRS. Your tax due amount may even be replaced by a tax refund by the time you finish doing your taxes. …

Can you file taxes if you owe the IRS?

The IRS not only offers you the option of filing your tax return online through its e-file program—but the agency also accepts electronic payments for the taxes you still owe with it. The IRS works directly with tax software companies like TurboTax to make it easy to prepare and e-file your return.

What do you need to know about TurboTax Form 1040?

If you are eligible for any of the tax credits listed on the form, make sure you reduce the amount of tax you owe by each credit before completing your Form 1040. Again, TurboTax will do all of this for you, so you get your maximum refund, guaranteed.

Can you pay federal and state taxes owed through Turbo Tax?

You have to pay all state taxes owed yourself by whatever method your state accepts. The ONLY thing that can be paid out of a Federal refund is the TurboTax preparation fees. The screen you are referring to is confusing, and we have complained to TurboTax about it many times, and apparently they have not made it more straightforward.

When do you get your tax refund from Turbo Tax?

Turbo Tax can not figure it accurately because they don’t know exactly when the IRS or state will get your return and tax due payment. It’s very common and normal and expected for the IRS or state to bill you for more or send you a refund. February 17, 2021 11:55 AM

Why is line 38 on Turbo Tax only an estimate?

The amount Turbo Tax calculates on your 2020 return 1040 line 38 is only an estimate. Turbo Tax can not figure it accurately because they don’t know exactly when the IRS or state will get your return and tax due payment. It’s very common and normal and expected for the IRS or state to bill you for more or send you a refund.