Even if you made enough total payments to meet the requirements, you could still be subject to an underpayment penalty for California if you didn't make all of the quarterly estimated payments on time in the correct amount.
Taxpayers are required to pay 30% of the required annual payment for the first required installment, 40% of the required annual payment for the second required installment, no installment is due for the third required installment, and 30% of the required annual payment for the fourth required installment. For more information, see the instructions for Form 540-ES, Estimated Tax for Individuals.
If TurboTax calculated a penalty, you can visit the Underpayment Penalty section of the California return under Other Situations and complete the interview questions to see if it makes a difference in the calculation.
Did you also review the Underpayment Statement in the California forms list? It provides a chronological listing by quarter of events or transactions that impact the penalty calculation, including rate changes during the year. If the dollar amounts and dates on the form are correct, the calculations on the statement appear correct.
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