On California 5805 Smart Worksheet #F, I qualify for exemption under #2 as did not have CA tax for 2022. Why does system not put a 2 on line

[LenaH]

In order to get the penalty exception if your tax was less than $500 for the prior year, you have to specify your 2022 California tax data towards the end of the state section in TurboTax. In order to do this, please follow the steps below:

1. Open your state return.
2. Go through your California return until you reach the page, A few things before we wrap up your state taxes.
3. Under Underpayment penalty, click Start.
4. On the page, Underpayment Penalty, click No to the question Do you want to let the Franchise Tax Board calculate the penalty and send you a bill?
5. On the page, Exception Based on Last Year's Taxes, enter 2022 information to qualify for the exception based on prior year's tax. See the below screenshot as an example.
6. Continue through the section. If you qualify, the penalty will be removed.