To answer your questions:
1) Yes, possibly. Here is CA's rule:
Generally, you must make estimated tax payments if in 2022 you expect to owe at least:
- $500
- $250 if married/RDP filing separately
And, you expect your withholding and credits to be less than the smaller of one of the following:
- 90% of the current year’s tax
- 100% of the prior year’s tax (including alternative minimum tax)
https://www.ftb.ca.gov/pay/estimated-tax-payments.html
2. The credit is taken on your MN return and will reduce your MN taxes due. But the credit can't exceed your MN taxes due.
3. This is all determined by the tax laws of the two states. The "other state credit" is necessary because federal law prevents two states from taxing the same income.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
