I received income tax computation notice from Maryland state. I have overpayment but they calculated that there is interest for underpayment of estimated tax, so my refund is less than my overpayment after paying for the interest. I am very confused about this. My MD withheld plus the estimated tax payment is more than my tax, why I get charged for interest. For example, my withheld was 21K and I also paid $5k estimated tax, my tax was 25k, so I should be getting 1K refund, but instead they charged me for $80 interest. Any thought?
