This was more information regarding my state taxes:
For 2023,
- State tax withhold : ~67K
- State tax for income : ~46K
- State tax return after filing taxes : ~21K
For 2024,
4. State tax withhold : ~49K
5. State tax for income : ~105K
6. State tax underpaid and need to pay after filing taxes : ~56K
Based on above,
Since #4 is less than 90% of 2024 tax liability (#5 )and #6 is more than 110% of 2023 tax liability #2.
I did not even get screen you have posted. If I have seen that screen, I would have marked "No" and inserted Annualized income installment method to reduce the penalty. That is why I think there is some issue with software. Based on tax liability i should be paying penalty unless I am missing something. Worse case FTB will send notice for penalty but at that moment I will not be able to do annualized income method and they might charge interest as well.
