Pa underpayment penalty

[mitchrholliday]

Turbo Tax is saying I have a Pennsylvania underpayment tax of $24.00.  I paid estimated Pa. Tax in the 2nd and 3rd quarters and actually over paid.   Why am I getting an underpayment charge of $24.00 ??

[Anonymous_]

You should contact the PA DOR.

https://www.revenue.pa.gov/ContactUs/Pages/Contact-Us-By-Phone.aspx

[SteamTrain]

The standard default calculation used probably has you owing some tax in Q1. 

BUT, the default calculation assumes all income was even over the year.

To fix it, or minimize the penalty.

....., there is a PA REV 1630 form that PA uses to re-calculate the penalty (if any) based on exactly when you received all your income...and made your withholding and quarterly Estimated payments by Quarter.  

That form is not scheduled to be ready in the software until 31 Jan...so there's little you can do right now about it.  After 31 January, go thru the PA interview again and look for the area where you can attempt to reduce or eliminate the penalty....But, if you want to do that, be prepared to break up and delineate ALL your income, dividends, interest, cap gains etc by quarter...or, just pay the penalty.

Whatever you do, do NOT file before the end of January....you may yet get many more tax forms by then.

For Reference, A copy of the 2022 PA REV 1630 can be obtained at the link below (the 2023 form isn't up yet)...take a look at it. TTX will try to ,lead you thru it as best it can.  Also note that the income periods in Section II...they are not all an even 3 months.

2022 Personal Income Tax Forms (pa.gov)