Question

State tax says I have an underpayment

Forum|Forum|4 years ago
March 22, 2022
1 reply
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I finished my federal, and began my state return. Immediately TT said I have an underpayment exactly equal to what I owed last year. I paid that last year. It was debited out of my account in May. But my state return is saying I did not pay it. What do I do next?

AmyC

Employee

There is not any place on a state return to add debt from the prior year so this should not be the case. If you had the same income and did not change your w4 at work, you would owe the same amount. The question becomes, do you owe the same as last year or is something odd happening in your return. Please look at your state return and locate the taxable income, the tax liability, the amount of tax already paid in this year and see if those items match up with what happened in 2021.

Example:

Earn $50,000

tax liability $2500

tax withheld from paycheck $2000

you would owe $500

You need to change your w4 at work to withhold more money through the year to avoid owing each year.

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