OK. I think I understand the problem was poor sentence construction by the CA FTB (not turbotax). The language for the exception was (and I am simplifying) to enhance clarity:
"The amount for your tax liability ... less credits but not including estimated tax payments for either 2020 or 2021 was less than $500." This dangling participle issue results in confusion what "for either 2020 or 2021" modifies. In proper English it should modify "estimated tax payments", which is how I read it:
Thus I read it to mean:
"The amount for your tax liability ... less credits (but not including estimated tax payments for either 2020 or 2021) was less than $500." This means the tax liability only applies for 2021.
I think it really means:
"The amount for your tax liability ... less credits (but not including estimated tax payments) for either 2020 or 2021 was less than $500." This means it applies for EITHER 2020 or 2021.
My tax liability excluding estimated tax payments for 2021 was $5000. (doesnt qualify for exception)
I had a tax refund for 2020. So this DOES qualify me for an exception!!
Turbotax did it correctly! Saves me $200. I will efile and gladly pay Turbotax the state filing fee.
