@catdelta wrote:
2. You expect your withholding and refundable credits to be less than the smaller of:
a. 90% of the tax to be shown on your 2020 tax return,
or b. 100% of the tax shown on your 2019 tax return. Your 2019 tax return must cover all 12 months.
Note that it is the smaller of 90% of the tax shown on your 2020 return or 100% of the tax shown on your 2019 return (the 100% can increase to 110 percent based on adjusted gross income).
For example, if the tax shown on your 2019 return was $20,000 and you paid $20,000 in estimated tax, or had that amount withheld during the 2020 tax year, there would be no penalty even if your 2020 tax liability turned out to be a total of $30,000.
