Why did TurboTax not calculate VA state tax underpayment penalty on form 760C

Forum|Forum|2 months ago
May 1, 2026
1 reply
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I did my taxes with TurboTax, just like I have for many years. I efiled as usual.

Couple of weeks later I checked my VA tax account on their website, and it showed I still

owed another $112. They had accepted my return and the amount TT said to send them,

but had a different number for Tax Due. The reason stated was that there was no calculation

of underpayment penalty (I assume the implication is that they calculated it for me, and added

it to my balance due).

I don't know whether I hit a bug in TT, or if my "choose what I work on" method of using TT

introduced this error, but VA is right - form 760C is only partially filled out in the return filed.

I am not a tax expert; every year I count on TT to get it right even if I can't explain it myself.

When repeated reviews and accuracy checks tell me my return is correct, eventually I have

to trust it and file the return.

For the time being, I have assumed that VA is correct for 2025, and have paid the balance due.

But I need to make sure that in the future this calculation gets done. What can I do to trigger

this form to get completed?

baldietax

Level 12

what do you mean by "partially filled out", what was missing?

at the end of the tax interview flow for Virginia there is a final screen "a few things to wrap up" etc and on that screen is an interview section for underpayment penalties where you can go through AI method or validate 2024 tax info which affects the underpayment calculation.