Maryland annualized income

[Samhome]

Our income was very uneven in 2024, and annualizing income on the Maryland return to avoid underpayment penalty has been available in Turbotax in the past, but I don't see it this year. Why not?

[LenaH]

Please follow the instructions below to use the annualization method on your Maryland return:

1. Open your state return.
2. Continue until you reach the page, A few things before we wrap up your state taxes.
3. Click Start or Revisit next to Interest on Underpayment of Taxes.
4. Enter the date you will file your return.
5. On the screen Underpayment Exception, answer no.
6. On the screen Underpayment Interest, answer yes.
7. On the screen Your Interest, select Use annualization method. 
8. Enter the information on the following screens. 

[Samhome]

I do not have the topic "Interest on Underpayment of Taxes" on my "A few things before we wrap up your state taxes." page. If I did I certainly would have gone there. I closed and restarted to be sure I had software updates. I am using desktop Turbotax Deluxe for Windows.

[AmyC]

Since you are using the desktop version, you can switch over to forms mode. The MD 502UP shows income annualization and computation of interest. 

You can right click to override or find the data source. It is best to go to the data source for entries.

[Samhome]

I have poked around behind the scenes, and I can get the penalty to go away, but in the depths of my brain, I recall not being able to file electronically because I changed something manually. Is that still true? Please explain "best to go to the data source". What constitutes an "override", and is that what prevents (or prevented) filing electronically? I appreciate your help, thanks. Samantha

[AmyC]

1. Maybe so let's try to avoid that. 

2.If you can right click back to data source, you can usually enter a number without the override. That is the best of both worlds.  See the explanation and screenshot below.

Here is a screenshot of a data entry box, it will cause no problems in the program, errors, flags, etc. When I right click override is not available or data source. This is the best place to enter a value.

3.  An override allows your entry instead of the one calculated by the program. 

Once you have things fixed in the forms mode, switch back to step by step and you should see you changes. Let the program run the review. 

If you did an override, switch to forms and cancel the override -see if your correct numbers show for the current value or if you need to keep the override. If your numbers show up as the current value, you can cancel the override. Otherwise, keep it. You need for your numbers to be accurate.

The program has many parts and sometimes there is a warning, sometimes an error. Hopefully, your program will go through review without an issue and allow you to  file successfully.