I am trying to determine if I am going to owe an underpayment penalty on my Maryland state taxes for tax year 2014.
Form 4502UP (http://forms.marylandtaxes.com/current_forms/502up.pdf) states that the form need not be filled out if one of the following is true:
No interest is due and this form should not be filed if:
A. The tax liability on gross income after deducting Maryland withholding is $500 or less, or, B. You have made four quarterly payments as required, each equal to or more than one-fourth of 110% of last year’s taxes.
I think (b) applies to me. I pay my state taxes through employer withholding - I can't say for sure that that sent it all in, but assuming they have sent all of my taxes in by year end, then can't I simply take:
State/Local taxes paid in 2014 through payroll deduction >= 1.1 * 2013 MD State/Local taxes
Right? Am I misreading that?
edit: Correct the calculation to reflect 110%.