2017 State Tax Return Estimated Payments

[vabney]

I received a penalty notice of $130.00 for my 2017 State (Illinois) taxes. My 2018 Estimated state taxes were estimated by the Intuit Turbo Tax online software. When I contacted the Illinois State Department of Revenue, they indicated that Turbo Tax software calculated my 2018 Estimated payments from my 2017 taxable state income. However, in 2017 I had both W2's and 1099's, Turbo Tax calculated my W2's for 2018 estimated payments, but did not include the 1099's. So, my 2018 quarterly estimated payments were underestimated by $109.00 per quarter for a shortage of $436.00 in 2018. The State of Illinois adjusted my 2018 taxes accordingly. However, they penalized me for the shortage quarterly.

Can a intuit turbo tax representative speak to what happen, I used the turbo tax pre-generated State Estimated tax vouchers to make my payments. Please let me know what happen, and if I can received a reimbursement of this penalty from Turbo tax? I just received this penalty from 2017-2018 this month! 

[tagteam]

---

@vabney wrote:

However, in 2017 I had both W2's and 1099's, Turbo Tax calculated my W2's for 2018 estimated payments, but did not include the 1099's....

---

Are you certain that was the cause of the underestimation? I, personally, had an issue with Illinois because the state increased the tax rate from 3.75% to 4.95 percent in the middle of the year (effective July 1, 2017).  Thus, estimated taxes based on the 2017 "blended rate" could be insufficient for the full 4.95% for 2018.

If the cause was other than the aforementioned (which had the potential to affect quite a few taxpayers), the you should contact Customer Support during regular business hours.

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632