State (CO) is showing I owe an extra $30 penalty.

Forum|Forum|1 year ago
March 12, 2025
1 reply
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Due to expecting owning a large amount of tax's due to investments, I have an account setup on the CO state web site. I filed my taxes earlier this year, before CO was ready and TurboTax held the filing and filed it automatically when they started excepting. So far so good.

Federal excepted the forms and eventually took out the money from my savings account and setup via the TurboTax software. I kept an eye on the CO taxes since they were delayed processing till, well now. CO accepted the forms and eventually took the money from my savings account. as well. Still all seemed good.

Well as this are still turning, I checked the CO website, and it did receive and process the forms. But it also say's I still owe $30. After some checking it shows that $30 as a penalty which I still owe.

Any reason why?

JustAnotherNerd

Hard to say for sure, but a common penalty is not withholding enough throughout the year. The rules are a little complicated and I don't know anything about CO specifically, but the idea is that you can't wait until tax time and pay the whole thing at once. The state needs your money on an ongoing basis all through the year. The size of the penalty typically is a function of how big the underpayment was.

Again, I'm not certain that's your specific problem, but it is a common source of a modest penalty like that.