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Level 2
posted Sep 17, 2023 10:45:18 AM

Calculates state penalty wrong

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.

0 7 3245
7 Replies
Level 15
Sep 17, 2023 11:47:55 AM

you state you have a state penalty. What state? 

 

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

 

which is it? 

Level 15
Sep 17, 2023 12:59:51 PM

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  

Level 2
Sep 18, 2023 6:26:54 AM

Sorry, the state is Massachusetts.

Level 2
Sep 18, 2023 6:29:20 AM

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. 

Level 2
Sep 18, 2023 6:30:37 AM

I owe a state penalty but not federal 

Level 15
Sep 18, 2023 7:44:15 AM

@J111000 you will have to work yourself through this form; presumably it is in Turbo Tax.

 

https://www.mass.gov/doc/2022-form-m-2210-underpayment-of-massachusetts-estimated-income-tax/download

 

Part 3 would get you out of the penalties.... 

 

 

Level 2
Sep 18, 2023 8:00:57 AM

Yes, I don't see a way to edit MA Form M-2210 within TurboTax, however. 

 

Last year I needed Federal form 2210 as well, so didn't have this problem.