3039484
Good Morning!
I have posted several questions, but the system has yet to notify me via email as it typically does when it receives and responds to a post.
Why am I being penalized on Form 502UP for $44.00, and did I not fail to file a tax return? I did not have the problem last year.
Respectfully,
BAdams
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MARYLAND Form 502UP Underpayment of Estimated Income Tax by Individuals is generated when you do not have enough withholding or estimated tax in the year.
To avoid an underpayment penalty, you need to make sure either that the total amount of estimated taxes you pay during the year equals at least 90 percent of what you owe in taxes for the current year or 100 percent of what you owed in taxes last year.
To confirm your tax due to a particular state, you can view a Tax Summary by clicking on Tax Tools, on the left menu
The example below is for Virginia but all of the states have the same format.
MARYLAND Form 502UP Underpayment of Estimated Income Tax by Individuals is generated when you do not have enough withholding or estimated tax in the year.
To avoid an underpayment penalty, you need to make sure either that the total amount of estimated taxes you pay during the year equals at least 90 percent of what you owe in taxes for the current year or 100 percent of what you owed in taxes last year.
To confirm your tax due to a particular state, you can view a Tax Summary by clicking on Tax Tools, on the left menu
The example below is for Virginia but all of the states have the same format.
Thank you so much!
I have a different question related to MD form 502UP but cannot find a way to start a new thread.
On Maryland's 502UP form, on line 14, turbo tax did not do cummulative estimated taxes paid for the 3rd period. the total amount paid is correct but the column for the 3rd period did not include the 3rd period payment.
Is it because the payment was 4 days past the due by date? there was an issue with my entry of my account number from which to pull the payment; the customer service rep said I can just pay it - so guess it went towards the 4th quarter payment?
the only issue is it does impact the interest that I owe. lesson learned....
If I understood you correctly, no, you cannot retroactively pay for a quarter. So if your 3rd quarter payment was posted 4 days after the due date, it became a 4th period quarter payment, no matter which field it was entered into.
And, yes, it may affect the amount of interest that you owe.
thanks - that is exactly the situyation. took me too long to figure that out. learning the hard way as i make adjustments in retirement - heard to figure out the balance of federal and state withholdings/estimated payments. Shame the state rep didn't tell me that if i owed, it would impact amount of interest due.
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