If you paid $800 in the first quarter of 2022, but then still owe $800, it means you underpaid for the rest of the year. This would be the reason you are seeing an underpayment penalty.
California requires that you make estimated payments if you expect to owe more than $500 for the tax year and you expect your withholdings to be the lessor of
- 90% of the tax on your current year return
- 100% of the tax liability on your previous years return.
If you did not do so, you will receive a 3% underpayment penalty.
If you are saying you paid $800 and that was your TOTAL tax liability so you should owe nothing, then you may have entered the $800 under federal instead of state. If this is the case, then you simply need to take the following steps:
- Federal
- Deductions and Credits
- Show More next to Estimates and Other Taxes Paid
- Revisit next to Estimated Tax Payments
- Revisit next to federal estimated taxes
- Walk through delete the $800
- Start next to State estimated taxes for 2022 and enter your state payments.
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