- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Incorrect penalty calculation for TT2024 VA state estimated taxes
I am using TT Deluxe 2024 with VA state, and I am not annualizing my income. I enter state estimated tax payments that result in a VA under-withholding penalty. Then, I increase the fourth payment enough to eliminate the penalty. OK.
If I then increase the first estimated payment by $X, and I decrease the fourth payment by the same amount, TT shows a penalty. If I put my four cumulative estimated payments all in the first payment amount, and I zero out the next three payments, the penalty increases.
There should be no penalty for paying estimated tax earlier than necessary. Either TT's VA state penalty calculation is wrong, or else the VA state penalty formula is flawed.
I am not annualizing my income, and my four estimated tax payments are not all the same amount, but TT does not complain about that.