Estimate of my state tax refund showed at the top while filling out federal, but changed to tax due

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noschiff
noschiff Member Newcomer
in General

Estimate of my state tax refund of $900 showed at the top while filling out federal, but changed to tax due of $600 as soon as I began filling out state tax form. Did something go wrong, or is this typical?

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  • noschiff
    noschiff Member Newcomer
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    I've retraced my steps in a competing program and I noticed that the step that changed my estimate of a refund for NY state to taxes owed was the question about New York City residency. This has never happened before. Did the law change this year and are there now significant new taxes owed by New York City residents? I can't find information about this anywhere, but I suspect this tax has to do with New York City employees, rather than residents. Has anyone had a problem with this issue?

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  • MatthewD
    MatthewD FreeTaxUSA Team
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    Hello,

    Keep in mind that the federal tax due or refund is calculated as you enter information. My guess is you entered some information and on the Summary your refund was finally calculated.

    If you update your residency from part-year or nonresident to Resident, then the state will tax you on all your income. I am sure something like that happened as you worked on your NY return.

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