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"Estimated Tax Penalty" interview section doesn't appear, and form view is uneditable for line 14

Using 2023 Turbotax deluxe (Mac edition)

There is no 'Estimated Tax Penalty' EasyStep section as mentioned in post "How to input Maryland annualized income?".

 

Brave users can go into form mode to MD 502UP and check the 'annualize' box, but that still doesn't allow line 14 to be edited. TurboTax simplistically smears your reported withholding evenly across all 12 months, regardless of when it was actually withheld. This matters if you left a high paying job early in the year, and had large income in the last quarter. ☹️

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1 Reply
MonikaK1
Expert Alumni

"Estimated Tax Penalty" interview section doesn't appear, and form view is uneditable for line 14

Maryland's underpayment penalty is actually described as "Interest on underpayment of taxes".

 

I am unable to test Maryland on my Mac, but the interview for that issue normally appears on the screen, "A few things before we wrap up your state taxes" under the heading, Other Situations. It asks you the date you plan to file and pay, and whether you filed for Maryland last year. If you filed for Maryland last year, there are some follow-up questions.

 

Maryland Form 502 UP includes these EXCEPTIONS WHICH AVOID THE UNDERPAYMENT INTEREST 

 

No interest is due and this form should not be filed if: 

 

  • A. The tax liability on gross income after deducting Maryland withholding is $500 or less, or, 
  • B. You have made four quarterly payments as required, each equal to or more than one-fourth of 110% of last year’s taxes.

If you don't include the form in your return, and Maryland assesses a penalty with which you don't agree, you can respond to their notice with any additional information needed.

 

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