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Maryland wants to charge an underpayment penalty on partial year when taxes from Virginia cover the full tax owed easily.
Have prorated money received for income and taxes paid for time in Virginia for old job of 8 months for 6 months living in Virginia before moving back to Maryland. New job was all Maryland. Is there a way to get credit for taxes paid over the year? Currently owe 690 + 31 penalty for Maryland with refund of 740 from Virginia.. I know it is a wash, just checking.
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Maryland wants to charge an underpayment penalty on partial year when taxes from Virginia cover the full tax owed easily.
It is not enough to pay your entire tax amount, you have to pay it over the course of the year. The income tax in the US is a pay-as-you-go system.
If you would have withheld Maryland taxes during the year, you likely would have avoided the underpayment penalty. But I understand that sometimes this doesn't happen.
And unlike the federal income tax, where you are excused the underpayment penalty if your tax due is less than $1,000, for Maryland, you are excused only if the tax due is $500 or less.
Please see the Maryland 502UP form to get an idea.
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Maryland wants to charge an underpayment penalty on partial year when taxes from Virginia cover the full tax owed easily.
It is not enough to pay your entire tax amount, you have to pay it over the course of the year. The income tax in the US is a pay-as-you-go system.
If you would have withheld Maryland taxes during the year, you likely would have avoided the underpayment penalty. But I understand that sometimes this doesn't happen.
And unlike the federal income tax, where you are excused the underpayment penalty if your tax due is less than $1,000, for Maryland, you are excused only if the tax due is $500 or less.
Please see the Maryland 502UP form to get an idea.
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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