Thank you for all the insight and suggestions!
I will definitely try that (re-create doing CA first.). I can't recall how we had done it.
@Opus 17 "I'm also still unclear on the current demand. You originally said you owe $9 but you didn't specify where, I guess that is Illinois? So she paid more than $1000 originally, and now you are being assessed $9, and separately you are being assessed an underpayment penalty? If that is the case, it sounds like Illinois does not agree with the $8.66 shown in box 17. It's also unclear to me how she could have no IL income, but have $9 of IL withholding--I suspect the W-2 might be incorrect. In any case, my thinking is that IL is not giving her credit for the $9 for some reason, so they say she owes a further $9 payment."
Yes - this summary is correct. Yes, we paid ~$1K with her 1040-IL return, and now they came back with the $9 underpayment and the separate estimated tax penalty. We have also asked whether this is a W2 error and are waiting for the response from her company.
Thank you!
