How do I change the Line 14 credits in TurboTax so it reflects the actual dates taxes were withheld? I get a penalty because my withholding was divided equally across the 4 quarters of Line 14. Most of my withholding was paid in January though, and I would not be penalized if this was reflected in Line 14.
Anyway TurboTax can fix this so I don't need to prepare my Minnesota returns manually? Thanks.
TurboTax does not allow you to change the Line 14 credits to reflect the actual dates taxes were withheld unless you override the line 14 amounts.
You can override fields in the CD/Download software. It is not recommended. An override will void the TurboTax 100% Accurate Calculation Guarantee.
To override see How do I override (replace) an amount calculated by TurboTax?
The Minnesota Form M15 instructions say, “You are considered to have paid Minnesota withholding evenly during the year unless you show otherwise" so using different amounts is acceptable. It is just not supported by TurboTax.
In searching through other customers listed questions I found the answer to my question. I have used Turbotax for years because it worked well for me and allowed me to efile. My current situation (retired with a taxable income in January with withholding and a withdrawal from IRA in q4) leaves me with an underpayment penalty for Minnesota due to shortcomings in the software. The withholding in January offsets any penalty. I can reflect this for the Federal but not the state. The penalty exceeds what I pay for the software and the only option I have is to make changes to the software that invalidate the support and also require me to file by mail. Does this make any sense ... I need to suck up the penalty or stop using Turbotax. This situation will continue for me in future years so my question is do you plan to fix this in the future? I realize you can fix this but it is a matter of resources. It may not mean much for you but it does for me. Please respond so I can plan how I will do my taxes in the future.
I guess the lack of response after 3 weeks is all the answer I will get. My interpretation is this is not a priority and even though you understand the short coming in the software you have no intention to put the effort in to correct it. Is that about right ... oh yea, you don't respond to inconvenient questions.
I called the MN Department of Revenue and explained the situation to the rep. Here's what I was told to do: Since my total withholding (before penalty) exceeds my tax due and thus I am due a refund, I should not submit Schedule M15 and remove the underpayment penalty from Form M1. That's what I did and I got my refund with no underpayment penalty and no additional information was requested from me.
Is that actual policy or just some thing that the rep knows works? I don't know. So buyer beware. I am not recommending this, just sharing what worked for me.