I may have underpaid my federal and Michigan state taxes for 2021. I didn’t realize I needed to make quarterly estimated payments if I knew I would owe at the end of the year. The last quarterly estimated payment is due January 15, 2022. Is there anything I can do by then to avoid paying a penalty on my underpayment?
I read the penalty is waived if I paid 100% of last years taxes. Does that mean if I paid my tax liability of last year in this years taxes. If so I paid 300 less this year (2021) in federal tax than last year (2020).
