The Underpayment Penalty interview under Other Situations you mentioned does not exist in California section. It only exists in Federal Tax section. I went to that section and it only asked about tax liability transferred from 2024 federal tax liability, nothing about last year California tax liability. I check CA Form 5805 part II line 5 and it is empty. It should have 110% of last year CA state tax liability. Like user PF13502 said and did, the penalty went away once I manually entered the correct value. I am also a software developer and I think you should report this as a software bug to your development team. Thanks!
@MonikaK1
