I'm trying to reduce underpayment penalty for CA.
There is a section you enter information to see if you qualify "Exception based on last year's tax."
There is a box where you enter " 2019 tax liability" and "2019 AGI". My income in both 2019, and 2020 were over $150,000. Am I supposed to enter the exact tax liability amount shown in 2019 CA tax return? or should I calculate manually 110% of 2019 CA tax liability and enter the amount? I think Turbotax should automatically calculate 110%, but looks like it doesn't do so.
Is it a program error?? or my misunderstanding?
( I didn't pay any estimated tax payment and all were withholding on W2. My withholding of 2020 was more than 100% of 2019's tax liability, but less than 110% of 2019 tax liability. so I believe I have to pay penalty. Therefore, I'm thinking of using annualized method. ) but somehow Turbotax treats my return as if it meets exception if I enter just exact amount of 2019 CA tax liability instead of 110%. If I enter 110% of tax liability in the box, it does calculate penalty though.
