After you file


@sjjestewart wrote:

Thanks for both responses!  Sorry for not providing more details.

 

Our home state is IL and she worked in CA.  She did file returns in both states (via TurboTax :)).  So we let TT work its magic.  The one complexity we had was her W2 with the IL withholding as I mentioned.  I have asked her to reach out to her HR department (she's back at the same company this summer but now on the east coast!) as I'm curious as to why this $9 was withheld for IL.  I'm sure there is a reason.

 

We have no problem paying the $9 if in fact something was done wrong on our end.  I was not particularly happy about the unrelated penalty they added for not making estimated tax payments.  But good suggestion to do that for 2024 or we may be in the same boat!

 

Thanks a lot!

 


So it's still not clear what actually happened.  Did she have CA and IL withholding, or only one state, and which state?  Did she have a CA tax liability (paid tax to CA, total combined withholding and any payments)?  Her IL tax liability after the out of state credit was $9?  And her IL withholding was $9, so she owed no additional payment to IL?

 

If I understand correctly, no penalty should be owed and you should appeal the assessment by writing a letter of explanation.  But I may still not understand the facts correctly.