AdamNe
Employee Tax Expert

Get your taxes done using TurboTax

@jayyrayy  good question! If you satisfy ONE of the following situations when you file your 2021 return, you will not owe a penalty for underpayment of estimated tax:

 

  • Your filed (2021) tax return shows you owe less than $1,000 or
  • You paid at least 90% of the tax shown on the return for the taxable year or 100% of the tax shown on the return for the prior year, whichever amount is less.

See "Who Must Pay The Underpayment Penalty" here

 

Without seeing your tax returns and all the detailed information about your income and withholding, it is impossible for me to say for sure whether you owe estimated taxes. 

 

My suggestion is to first enter everything into the TaxCaster, which will tell you what your balance will be. If the TaxCaster shows a significant balance due, you may want to make estimated payments to get yourself into one of the categories above. 

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