That’s exactly what I said!
iF YOU HAVE PAID ENOUGH DURRING THE YEAR THAT YOU DON’T OWE ANYTHING WITH YOUR RETURN THERE IS NO 5% PENALTY.
If you owe one cent there is a 5% surcharge on the entire tax amount.
BTW, go straight to hell!
You owe the 5% surcharge whether you underwithheld, overwithheld, or withheld exactly enough money to cover your state income tax liability for the year. When you calculate your total income tax liability from the tax tables - you add another 5% to that total.
Let's change the example I provided in Post 48:
Let’s say you made $50,000 last year and your state income tax liability was $2,000.I'll expect an apology from Dalereed after he does his homework.Over the course of the year your employer withheld $2,500 from your paycheck for California State Income tax withholding - and you would ordinarily get a refund of $500 when you file your taxes.
The surcharge would still be 5% of $2,000 ($100), so your new tax bill is $2,100 (and your refund would only be $400) - you would not have avoided the tax as Dalereed professes.