Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Feb 25, 2024 12:24:24 PM

VA state tax incorrect

TurboTax is saying that I owe $977 for both federal AND Virginia taxes. The Virginia tax table shows that I only owe $647. Can this please be fixed asap?

0 7 1473
1 Best answer
Employee Tax Expert
Feb 29, 2024 12:03:06 PM

This is what I see from your screenshots:

 Start with AGI of $29k listed on your federal screenshot.

 

  • Your federal AGI is $29k and subtract out the standard deduction of $13,850 and you get a taxable income of $15k. Federal is good.
  • Your state, VA, begins with federal AGI, $29k. The VA standard deduction, shown on page 12 of 760 Instructions is $8k, along with any other deductions, so taxable income around $21k makes sense. 

Tax Liability

  • Federal - tax is $1.038 but you paid in $61 so you owe $977
  • State - tax is $921 and you did not pay in anything so you owe the full amount plus a penalty. It just happens to be $977 also.

I am not seeing a problem. What is wrong?

 760 Instructions page 26 explains the penalty:

Line 18 Addition to Tax: Use Form 760C to compute any addition to tax you may owe for underpayment of estimated taxes. Use Form 760F if at least 66 2/3% of your income is derived from farming, fishing and/or being a merchant seaman. You will not owe an addition to tax if each payment is made on time and: • you owe $150 or less in tax with your return. • total withholding and timely estimated payments were at least 90% (66 2/3% for farmers, fishermen and merchant seamen) of your 2023 tax liability after nonrefundable credits or 100% of your 2022 tax liability after nonrefundable credits. • you meet one of the exceptions computed on Form 760C or Form 760F. Enclose Form 760C or 760F showing the computation. If you do not meet the criteria shown above, visit www.tax.virginia.gov, or refer to Form 760C or Form 760F

7 Replies
Employee Tax Expert
Feb 27, 2024 9:00:13 AM

Can you please clarify what the issue is? Why do you think VA tax is incorrect. You are saying the total amount you owe for federal and state is $977. VA tax table shows $647 so the difference is what you owe on your federal?

Amount you owe on your Federal return is reported on form 1040 line 37. 

 

Level 2
Feb 27, 2024 10:00:18 AM

IMG_1365.jpeg

 

Thanks for your reply, and I’m sorry for being unclear. TurboTax shows that I owe $977 for federal taxes. This amount is correct. TurboTax *also* shows I owe $977 for state taxes. This amount is incorrect; it should be $647,  according to my state tax tables. Does that make sense? 

Employee Tax Expert
Feb 27, 2024 2:39:51 PM

The meter seems to have a piece of data stuck in it throwing it off. Your forms need to be correct. If you have verified your forms are accurate, then you are safe to file. The meter is not part of the tax return so it is not relevant to filing an accurate return.

 

To see all of your forms:

Level 2
Feb 29, 2024 7:13:34 AM

Unfortunately this did not fix the problem. When I viewed my tax forms, my federal form shows my taxable income is $15K. But my state form has my taxable income at $20K. This makes no sense to me. I believe my state uses the federal taxable income to calculate their taxes. Can you please help correct this before I file?

IMG_0650.jpegIMG_0649.jpeg

Employee Tax Expert
Feb 29, 2024 12:03:06 PM

This is what I see from your screenshots:

 Start with AGI of $29k listed on your federal screenshot.

 

  • Your federal AGI is $29k and subtract out the standard deduction of $13,850 and you get a taxable income of $15k. Federal is good.
  • Your state, VA, begins with federal AGI, $29k. The VA standard deduction, shown on page 12 of 760 Instructions is $8k, along with any other deductions, so taxable income around $21k makes sense. 

Tax Liability

  • Federal - tax is $1.038 but you paid in $61 so you owe $977
  • State - tax is $921 and you did not pay in anything so you owe the full amount plus a penalty. It just happens to be $977 also.

I am not seeing a problem. What is wrong?

 760 Instructions page 26 explains the penalty:

Line 18 Addition to Tax: Use Form 760C to compute any addition to tax you may owe for underpayment of estimated taxes. Use Form 760F if at least 66 2/3% of your income is derived from farming, fishing and/or being a merchant seaman. You will not owe an addition to tax if each payment is made on time and: • you owe $150 or less in tax with your return. • total withholding and timely estimated payments were at least 90% (66 2/3% for farmers, fishermen and merchant seamen) of your 2023 tax liability after nonrefundable credits or 100% of your 2022 tax liability after nonrefundable credits. • you meet one of the exceptions computed on Form 760C or Form 760F. Enclose Form 760C or 760F showing the computation. If you do not meet the criteria shown above, visit www.tax.virginia.gov, or refer to Form 760C or Form 760F

New Member
Apr 13, 2024 8:22:27 PM

Also having a problem with VA taxes, as the state form ADJ Line 1 lists a different amount for non-Virginia obligations than what I listed in my 1040.  It's making my tax liability too small.  When I try to manually add the figure from my 1040, it lists it as a Conformity Addition (line 2b, code 99), in addition to the wrong figure listed in line 1.  This makes my tax liability too large.

Employee Tax Expert
Apr 15, 2024 9:06:55 PM

I am guessing that you are in the investments area of VA. If you can get the right tax liability, then you can explain what you did to get there, if asked.