RSUMan
Employee Tax Expert

Get your taxes done using TurboTax

There are two main reasons you may not have an underpayment penalty: 

 

1.  your withholding and estimated tax payments in 2021 exceeded 100% of your 2020 liability or

 

2. you paid at least 90% of your tax due for 2021 through withholding and estimated tax payments.  

 

When you fall into one of these "Safe Harbors", there is no underpayment penalty imposed.