I am working on my 2023 federal and California tax return, and I am also most done. So far, I am getting about $2000 federal refund and $3000 California refund; however, TurboTax said I need to pay a $2 penalty. Is that possible? I thought I only need to pay penalty if I own tax, right?
I paid about $8000 estimated tax as I realized that I would owe tax otherwise, but I followed the October deadline for first 3 quarters (I live in Alameda country, which is in natural disaster area, and deadline for estimated tax were pushed to October). I filed a waiver given I lived in Alameda, but I would just pay $2 if IRS doesn't agree.
