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Why do i owe state taxes but not federal?

Best Answers

The federal tax system and your state tax system are totally and completely separate. If you got a federal refund, then the amount of federal taxes that you had withheld was more than your actual tax. If you owed state tax, then the amount of state tax that you had withheld was less than your actual state tax. read more

Make sure you have answered the questions regarding deductions on your state tax return or tax credits available at the state level that were not available on your Federal return. 2. Look at your input for state income taxes withheld on your W-2. read more