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MJR22
New Member

TurboTax Error - Maryland Form 502UP

I moved to Maryland in August 2021. However, Turbotax is distributing the income I earned in Maryland from August to December 2021 as if I earned it evenly throughout the year. This is causing me to owe an underpayment penalty on form 502UP because lines 11 through 18 are incorrect. It does not make sense that I should owe Maryland income tax estimated payments for Q1 and Q2 because I was not yet a resident. I have verified that Turbo Tax is aware that my residency in Maryland started in August 2021. I am using the online version of Turbo Tax Premier.

 

Please fix this Turbo Tax error.

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1 Reply
ErnieS0
Expert Alumni

TurboTax Error - Maryland Form 502UP

The default calculation by Maryland is to split income evenly over the year.

 

If you receive income unevenly through the year you can elect to annualize your tax penalty.

 

  1. Select Yes on the Underpayment Calculation screen
  2. Select Yes on the Underpayment Interest screen
  3. Select Use annualization method on the Your Interest screen
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