Turbo tax is showing that I have a California under payment penalty this year. I did sell my house in California in 2019. I never filed estimated tax returns.
Under Qualified Exception, my 2018 tax liability is> TAX ON LUMP-SUM DISTRABUTION IS 0
CA INCOME TAX WITHHELD 0
EXCESS CA SDI WITHHELD 0
2018 AGI WAS 21,847.
With this information, do I still need to pay an under payment penalty? If not how do I make the proper changes to the forms?
I recommend not paying the estimated tax penalty and waiting to see if the State of California determines that you owe one. If you do, they will calculate it and bill you. If you pay it by the due date on the notice they send you there will be no additional penalty or interest.