Missouri underpayment penalty

[wilman10]

I moved to Missouri in October, 2023. I made an estimated payment on January 15, 2024. My return is calculating an underpayment penalty with calculations in each quarter. How do I override this? I did not know I was moving to Missouri until late in the year. My estimated payment has resulted in a refund.

[TomK2023]

Did you indicate when  you moved to Missouri when you first entered your personal information into th program?

TurboTax handles part-year returns, but you need to make sure you've set up your personal information correctly for us to do so. We'll ask about where you lived in 2023 when you set up your personal information.

If you need to add this information after you've begun your return:

Note: If your TurboTax navigation looks different than what’s described here, learn more.

1. Sign in to TurboTax and select My Info.
2. A Your personal info screen appears.
3. Question number 2 asks you the state(s) you lived in during 2023. Select your state of residence from a dropdown menu.
4. You'll also be asked if you lived in another state in 2023. Answer Yes and a new section will appear asking for your previous state of residence. Select the other state you lived in.
5. Fill out the date of when you moved to your current state.
6. If the rest of your information is accurate, select Continue.

After you finish entering your federal return info, you'll automatically move to the State Taxes section, where you'll see your part-year states listed. We suggest you prepare the return for your former state first, followed by the return for the state you currently live in.

[wilman10]

I did complete the personal information indicating a move from Nebraska to Missouri and the date we moved. For now, I overrode the dates in the Missouri filing. Missouri does give you options to file as a Missouri part-year/non resident OR Missouri part-year/resident. I chose the latter as it was beneficial to my situation. Perhaps that caused the error? I modeled the non resident option and I will check that and see if it also did the penalty. I didn't go that far in my original file.

[wilman10]

Nope, the other filing as a part year resident/non resident also had the same 2210 MO error. 

[wilman10]

Still no resolution to this? I did check the boxes about living in another state and entered the dates. Both versions of my return assessed a penalty. I overrode the penalty.

[wilman10]

Very frustrated that no reply or response from TurboTax in regards to this. I'll override but very dissatisfied with the lack of response. 

[DawnC]

When you went through the part-year return, did you allocate all of your income?   What does the error message say; you should be able to remove form 2210 if the penalty does not apply.   But the error may be due to something else.  

[wilman10]

Per the instructions, I file Missouri as a "part year resident. filing as a resident." In effect, I get taxed by Missouri on all my income and get a credit for taxes paid to the other state (Nebraska).  I entered the dates of my Missouri residency on the info worksheet. (as well as the federal info worksheet). There is no error message, the form MO-2210 calculates a penalty spreading my calculated estimated taxes over the four quarters beginning in April 2023. I did make one estimated payment in January 2024 which was more than my final tax amount so I am getting a refund, but still assessed a penalty. 

[AmyC]

MO does charge a penalty for unpaid taxes. If MO believes you owed more money earlier in the year, they could be charging you a penalty even though you are getting a refund. PY residents can elect to file as residents or nonresidents. The state does look at your income for the full year and calculate a tax liability. Then it prorates the amount based on MO income divided by total income. 

Since you moved there late in the year, a penalty does not make sense for you. Check your dates of residency and entries. I wonder if you had MO income all year and just moved there later to create the penalty.

You may need to contact support to have another set of eyes look or maybe you could post more information about what is causing this - sale of property vs income. Lump sum vs spread out. Is the penalty being charged on the full income instead of MO income?

Individual Income Tax FAQs - Missouri Department of Revenue