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April 8, 2023
Question

paid tax to another state, can I avoid underpayment penalty

  • April 8, 2023
  • 1 reply
  • 0 views

I am a CA resident, but paid taxes to Oregon for some RSUs. As I am preparing returns, it turns out that I need to claim tax credit of $X from Oregon and I owe an equivalent addn $X to California.

 

California is charging me underpayment penalty. Is there any way to ask for forgiveness because I did pay taxes, it just went to another state? Betw this is my first full year filing as a California resident.

 

If yes, how do I ask for waiving of underpayment penalty in TurboTax?

 

Thanks

    1 reply

    April 9, 2023

    on form 5805 you can ask for a waiver by checking the box and providing an explanation.  no assurance that CA will grant the waiver.