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January 28, 2024
Question

PA State Tax Underpayment Penalty Section Not Working

  • January 28, 2024
  • 1 reply
  • 0 views

I have to annualize my PA estimated tax payments this year since I can't do safe harbor, and want to avoid an underpayment penalty. I shouldn't actually have a penalty, but I still need to go through the penalty section in order to do the calculations to prove it.  I want to calculate this myself, but Turbotax is not letting me.

 

Specifically, under the PA "underpayment penalty" subsection, after answering no to the question "Do you want to let Pennsylvania calculate the penalty for you," it just brings me back to the main page, without allowing me to actually go through the process of annualization and penalty calculation. Since it is a state tax, it doesn't let me do a manual search for the correct form.

 

Can anyone direct me on how to get to the right spot? Or is it possible Turbotax has not fully updated the PA state tax to include estimated tax penalty calculation? If the latter, can I get an update as to when this will be fully updated? Or if Turbotax is not aware of this problem, can someone please let Turbotax know so that the issue can be addressed?

1 reply

January 30, 2024

The Pennsylvania (PA) Income Tax Instruction booklet shows that only a deceased taxpayer is allowed to annualize their income (page 61).  If you do not meet one of the 'Special Exceptions to the Penalty' then you must pay any penalty calculated on the return.  See the image below from TurboTax Online.

 

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