I am using TurboTax desktop to prepare my 2021 taxes. I am a Maryland resident.
I made 4 equal quarterly payments during 2021 for my 2021 estimated tax. (The 2nd quarter was $1 more than the other 3 quarters.) The total of those payments was 110% of my total 2020 Maryland tax liability.
I made the Maryland quarterly payments on July 6, July 7, September 7, and December 1 all in 2021.
TurboTax has filled in a 502UP showing $49 interest due for Q2.
I used the Step-by-step for all work and did not enter anything on forms and did not override anything.
I entered my quarterly Maryland payments in the federal section as normal and listed the above dates.
My 2021 tax liability is less than my 2020 tax liability and my 2021 estimated tax payments totaled more than my 2021 tax liability so I'm receiving a refund. (I now that in itself doesn't avoid interest, but I also paid 110% of last years tax and paid in even quarterly payments by the EXTENDED due dates.)
For 2021 Maryland extended their quarterly due dates to be "estimated payments due July 15, 2021 for the first and second quarters, September 15, 2021 for the third quarter, or January 15, 2022 for the fourth quarter".
TurboTax is correctly listing 1/4 then 1/2 then 3/4 then all of my Maryland income on line 11.
TurboTax is correctly listing 1/4 then 1/2 then 3/4 then all of my Maryland payments required on line 13.
However, for line 14 TurboTax is listing NOTHING at all (blank lines) for the 1st Period and 2nd Period then correctly 3/4 of my total estimated payments for 3rd Period and all of my payments for 4th Period,
It looks like TurboTax does not know that payments 1 and 2 could be made out until July 15 and still apply to 1st and 2nd periods.
Why am I being charged $49 interest? (I could adjust my income into exact quarters to reduce this but I should be well covered by safe harbor already. And that would be a LOT of work. This looks like a TurboTax bug.)
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I'd still value anyone's input, but I spoke with TurboTax phone support and (1) they agree that there should be no interest due, (2) that TurboTax is not putting in the period 1 and period 2 payments in the right place, but that TurboTax's form matches Maryland's form so they aren't going to change anything.
They agree that Maryland did extend the period 1 and period 2 deadlines, but Maryland didn't change their forms.
Support says to just efile and Maryland should catch the 'error' and refund the $49 since Maryland will know their form is wrong and that they extended the period 1 and period 2 deadlines.
Does anyone know if TurboTax normally takes into account changed deadlines for payments or taxes overall? (For example, Maryland just changed their due date to be about 2 months later this year.)
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