Why is turbotax trying to penalize me with a $35 estimated tax penalty when estimated tax payments don't apply to me?

It doesn't have to do with paying estimates.  It's a penalty if you owe too much or for not paying in enough withholding during the year or not paying in evenly.  

You might be able to eliminate it or at least reduce it.  You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you.  It's form 2210.

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

rules to avoid penalties for not paying in enough timely during the year.

There will be no federal penalties for not paying in enough taxes on a timely basis for the current tax year if withholding and

1. timely estimated tax payments equal or exceed 90% of your current year tax or
2. timely estimated tax payments equal or exceed 100% of your prior year tax (110% if your prior year adjusted gross income was more than $150K) or
3. the balance due after subtracting taxes withheld from 90% of your current year tax is less than $1,000 or
4. your total taxes are less than $1,000

state laws differ

I even had a refund once and still had a penalty for not paying in evenly during the year.