I don't know if VA is doing it the same, but NC used to calculate an initial penalty for taxes owed too
...BUT...#1...the initial penalty calculation only considered Withholding, and not the estimated payments. Thus, since you owed more than $150 BEFORE using the estimated payments, there was a penalty applied.
...BUT..#2...there may be a secondary calculation procedure in the VA State interview section "Other Situations" , where you enter that section and look for the "Underpayment" menu line. Go in there and there is likely a way to get those quarterly estimates included in the secondary calculation that removes the penalty...at least that's what I used to have to do for my NC tax return.......and the was very little else, other than checking a box in the Underpayment interview to include the estimated payments in the penalty calculation when I wen into that state underpayment section......but that was NC,....and no, I can't know what VA does.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
