The amount of my 2024 California tax was $X. My 2025 total payment (witholding + estimate tax payment) was $(1.10645*X). According to CA's estimate tax requirement, there should be no underpayment panelty. However, my TurboTax calculated that I need to pay $24 panelty. Can somebody help me to find out how and where the panelty is calculated or is a mistake made by TurboTax?
Thanks!
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I looked into how TurboTax Premium calculates CA Tax penalty. As regarding to penalty avoidance, it appears they only considering the requirement of 90% of current tax but didn't considering the 110% of previous year tax requirement. If it is indeed the case, can TurboTax fixed that before the filing season is over?
(P.S. Sorry I spelled Penalty incorrectly previously.)
I have it figured out. It appears that I need to enter the last years tax paid in the state review in order for TurboTax calculate the penalty correctly.
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