Calculates state penalty wrong

Forum|Forum|2 years ago
September 17, 2023
7 replies
25 views

I have no federal penalty due, but I do for the state. This is due to (1) federal but not state withholding for SSA benefits, and (2) large capital gain in December.

TurboTax says I don't owe a penalty and doesn't give me a way to specify the date of various income items to correct this.

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NCperson

Level 15

you state you have a state penalty. What state?

but then you state you don't owe a penalty.

which is it?

xmasbaby0

Level 15

And....you say one of the problems is that there was nothing withheld from your Social Security for state tax. Do you live in one of the states that taxes Social Security? Only a few states tax Social Security benefits.

There are 11 states that tax Social Security—Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

J111000Author

Level 2

The issue isn't that the Social Security is taxed. The bulk of the tax is on investment income at the end of the year. But the federal withholding on the SSA income is spread throughout the year, and is enough to avoid a penalty.