Hello, TT for 2021 CA 540 (joint return) calculated a $5 penalty for underpayment of estimated taxes. However, now we just received a bill from CA FTB for an additional $141, saying that "Estimated Tax Penalty" was $146 and not just $5. Why did TurboTax tell us the penalty was only $5? It generated Form 5805, but it says only $5 penalty owed.
Note that our monthly income in 2021 was unusual in that I retired in early 1Q2021. Secondly, my spouse started a new job and did not have income until late 1Q2021. In addition to this, I had additional income from inheritance of stock mid-2021, which paid out dividends in 3Q2021 and 4Q2021. And then I also had an inherited K-1, but that was offset by a loss. In addition to withholding, I paid estimated taxes to CA but apparently not enough. Taxes owed in 2021 were $1381 plus the $5 penalty. But now CA is billing us for $141 more. They don't explain why. Total tax liability was $13839, and we paid $6801 in withholding and $5657 in estimates, total. So, 90% of $13839 = $12455.10. We paid $12458, so paid more than 90% owed. Yet, we are we getting billed a $146 penalty instead of the $5 indicated by TurboTax? I don't understand why TurboTax thought we only owed $5 instead of $146. Would annualizing our income have made a difference since it was spread unevenly in 2021? Thank you.
