Error on Maryland Tax form 502UP

[taxavoider]

Maryland form 502UP line 1 is supposed to be the amount on Line 16 of Form 502 (MD adjusted gross income) and instead TurboTax enters the (lower) amount from Line 18 (Taxable net income). I reported this last week and it is still not fixed. I cannot file my taxes without it and interest is growing daily. When will it be solved??

[BillM223]

"Enter your Maryland adjusted gross income from line 16 of Form 502 or line 8 of Form 505NR. Alternatively, if you itemize deductions, you may elect to enter taxable net income from line 20 of Form 502 or net income from line 11 of Form 505NR." See Maryland Instructions for Form 502UP.

Is it possible that one of these alternatives applies to you?

My Maryland test works as expected, taking the amount from line 16.

Where did you report this last week? Here in the Community?

[taxavoider]

I reported it by telephone to TurboTax help person.

My form 502P (line 1) clearly states that the amount from line 16 should be entered on line 1 of Form 502UP and TurboTax automatically enters the amount from line 18. I see no alternatives on the form.

However, I do see that the instructions allow either to be used,however, I am not sure which amount is most beneficial to use.

[BillM223]

First, I want to clarify - is line 1 on the 502UP being set to line 18 of the 502 or line 20? You keep saying line 18 but the instructions refer to line 20.

Second, without having your exact tax data, I could not say which would be better. On the surface, since the amount of the underpayment penalty is dependent on the amount in line 1 of the 502UP, one would think that the smaller the number in line 1, the better, and line 20 would always be the same as or smaller as line 16 on the 502.

However, if the amount of your income varies during the year (like change in jobs or taxable one-time distributions), then the results might vary.