NH DP-10 says I owe a penalty for not estimating taxes on Int & Div I didn't receive until Nov '22 and Jan '23. Is this a programming error?

Forum|Forum|3 years ago
February 2, 2023
1 reply
4 views

I am not sure how I could have paid estimated taxes on unexpected dividends I received in Nov (from inherited stock) and a K-1 with interest & dividends I just got in Jan '23. In prior years I didn't owe over the $500 limit so wasn't required to file estimated taxes (not that I could have, since I had no idea that I was going to get the stock and K-1). My penalty for NH is $259. Should I be asking Intuit if this is an error in programming???

TurboTax Online

DMarkM1

Level 15

Yes, you can annualize the income to show you did not receive it until the end of the year in the NH state return.

In the "Interest and Dividends Tax" section Update the "Underpayment for Taxes on Interest and Dividends."
At the page titled "Underpayment Penalty DP-10 and click "NO" you do not want the IRS to figure your penalty.
Select "Tax on annualized income"
Fill in the boxes based on the dates the dividends were received.

Note as the page instructs, these boxes are cumulative. So once you put an amount in a box it carries through the remaining boxes other dividends are added to it.

If all were received after 9/30/2022 then put zeroes in all the boxes and continue.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"