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Incorrect Virginia Underpayment Penalty - Form 760C - Pass-Through Entity (PTET) Made Payments on Time
Hello,
I am a shareholder of a pass-through entity that made pass-through entity estimated taxes to the state of Virginia. My VK-1 correctly reflects this amount in Part III item 10.
I am using TurboTax Desktop to fill out my Virginia return. On Schedule CR, Part 6 and section 4/5 show the correct amounts.
TurboTax is automatically filling out Form 760C "Underpayment of Estimated Tax by Individuals, Estates, and Trusts". This form is calculating the underpayment for each installment period. With the PTET estimated tax payments in play, it should not be calculating penalties with the assumption that the individual tax payer didn't make the estimated tax payments. The payments that would have normally been made by me, were instead paid by the pass-through entity and I am claiming the refundable credit for those payments.
Is there a way to fix this behavior in TurboTax so that it doesn't include penalties in this scenario?