Md and dc withholding

[Mjwilz]

I am helping my son with taxes and he lives in md but taxes were withheld for dc for part of the year (he forgot to change it). TurboTax is showing a penalty even though dc and md have reciprocity.

he has now corrected it with hr, but is there a way to avoid the penalty?

[dmertz]

Unfortunately, taxes mistakenly paid to DC were taxes not paid timely to Maryland, so underpayment penalties apply.  Had this been caught early enough, an estimated tax payment could have been made to Maryland to minimize the penalties.

[Mjwilz]

Thank you