I have a related question. There appears to be a glitch in program's ability to address PTE credit payments against the obligation to make estimated quarterly payments. The result is an underpayment penalty despite the fact that the PTE payments were made lump sum prior to the first estimated quarterly payment date. In fact, contrary to there being no quarterly estimated payment, the reality is there should be an imputed overpayment attributable to each estimated quarterly payment (by virtue of the fact that PTE payments are made at the maximum rate without regard to any adjustments to AGI and without regard to credits for tax payments made to other states. While the program will accept an override to Form 760C of the 2023 tax liability to be a negative amount (to reflect overpayments) on line 1, it will not allow an override (of any information) to the the tax liability in line 7 to reflect the overpayment amounts at each quarterly payment date. Any suggestions on how to force this information into Form 760C. I think this necessary because a taxpayer has the obligation to prove the reason why estimated payments were not made to avoid the underpayment penalty. This appears to be a Virginia return problem, as I also file taxes in NY and no underpayment penalty is being computed in that return.
