I am using TT Deluxe 2024 with VA state, and I am not annualizing my income. I enter state estimated tax payments that result in a VA under-withholding penalty. Then, I increase the fourth payment enough to eliminate the penalty. OK.
If I then increase the first estimated payment by $X, and I decrease the fourth payment by the same amount, TT shows a penalty. If I put my four cumulative estimated payments all in the first payment amount, and I zero out the next three payments, the penalty increases.
There should be no penalty for paying estimated tax earlier than necessary. Either TT's VA state penalty calculation is wrong, or else the VA state penalty formula is flawed.
I am not annualizing my income, and my four estimated tax payments are not all the same amount, but TT does not complain about that.
You'll need to sign in or create an account to connect with an expert.
Also, I cannot find any VA state form listed in TT that shows the penalty calculation. How is the penalty calculated?
Insight: TT VA was using income annualization data I had entered previously, despite my selecting not to use it. TT federal deletes the annualization data if you select not to annualize your income, but TT VA does not! Even so, TT should not use the annualization data if you select not to annualize - this is a software bug.
Behold! Manually deleting the old (unused?) income annualization data fixes the penalty calculation error.
But there is still a software defect in there.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
rh61
Level 2
w_dye
New Member
w_dye
New Member
ahulani989
New Member
johnba1
New Member