topic Calculates state penalty wrong in After you file

Calculates state penalty wrong

J111000 — Tue, 24 Feb 2026 07:22:32 GMT

I have no federal penalty due, but I do for the state. This is due to (1) federal but not state withholding for SSA benefits, and (2) large capital gain in December.

TurboTax says I don't owe a penalty and doesn't give me a way to specify the date of various income items to correct this.

Re: Calculates state penalty wrong

NCperson — Sun, 17 Sep 2023 18:47:55 GMT

you state you have a state penalty. What state?

but then you state you don't owe a penalty.

which is it?

Re: Calculates state penalty wrong

xmasbaby0 — Sun, 17 Sep 2023 19:59:51 GMT

And....you say one of the problems is that there was nothing withheld from your Social Security for state tax. Do you live in one of the states that taxes Social Security? Only a few states tax Social Security benefits.

There are 11 states that tax Social Security—Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont

Re: Calculates state penalty wrong

J111000 — Mon, 18 Sep 2023 13:26:54 GMT

Sorry, the state is Massachusetts.

Re: Calculates state penalty wrong

J111000 — Mon, 18 Sep 2023 13:29:20 GMT

The issue isn't that the Social Security is taxed. The bulk of the tax is on investment income at the end of the year. But the federal withholding on the SSA income is spread throughout the year, and is enough to avoid a penalty.

Re: Calculates state penalty wrong

J111000 — Mon, 18 Sep 2023 13:30:37 GMT

I owe a state penalty but not federal

Re: Calculates state penalty wrong

NCperson — Mon, 18 Sep 2023 14:44:15 GMT

@J111000 you will have to work yourself through this form; presumably it is in Turbo Tax.

https://www.mass.gov/doc/2022-form-m-2210-underpayment-of-massachusetts-estimated-income-tax/download

Part 3 would get you out of the penalties....

Re: Calculates state penalty wrong

J111000 — Mon, 18 Sep 2023 15:00:57 GMT

Yes, I don't see a way to edit MA Form M-2210 within TurboTax, however.

Last year I needed Federal form 2210 as well, so didn't have this problem.