VA Filing did not submit 760C form for annualized income to avoid 760c penalty

[chrisgh]

Due to a 4th quarter IRA withdrawal (for which I sent a check in to pay for tax), I chose to annualize my income, so I was not penalized for not withholding more in the previous 3 quarters.  All worked fine on the Federal filing.  However, form 760C on the VA form is only partially filled in (lines 15, 18 and subsequent lines are blank).  It also turned out that the 760C wasn't included with the efiling of the VA return.  Virginia charged me a penalty (sent me a reduced refund) since there was no indication that my income rose abruptly in the 4th quarter from the IRA withdrawal.    I have to amend my return for another reason and would like to try to correct the lack of 760C filing.  It sounds like this has been an issue in past years but I found no solution.    Can I try to fill in the VA 760 form myself going into the form section and include with the amended return?  

[baldietax · Accepted solution]

at the end of the VA tax section questions you get to a "a few thing before we wrap up your state taxes" and under there, Other Situations / Underpayment Penalties you can work through annualization method for VA.  

Did you go through this section when you filed?  Not aware of an issue, I filed this last year.  It's not as easy to find as Fed where you can move through the different sections, you have to go through the interview sequence.

[chrisgh]

I must have missed that and then when I went to try to amend still couldn't get at it.  However, based on your comment, I created a new return and did things over again and was successful as you said.  Interestingly, then I could compare the forms...on the 760C form from the original return, it was only partially filled in.  I noticed that it had some numbers in the "Annualized Withholdings Smart Worksheet" that didn't make sense and were not in the 760C of my recreated return.  Once I deleted them on the original return's form, all of the rest of the numbers filled in and I was able to add my income  directly in the Annualized Adjusted Gross Income Smart Worksheet.  Then it shows that I fit an exception to the penalty.   OK..now to decide if I should trust TT to efile the amended return with the 760c or just mail it in so they will return the penalty they charged!  Thanks again.