there is a "safe" ways to avoid penalties for 2021.
1) withholding and estimated tax payments for 2021= 100% of 2020 tax (110% if 2020 adjusted gross income over $150,000) - the easiest method - withholding is assumed to be spread evenly over the year regardless of what the actual withholding is for each period. so 1/4 of the year's total withholding is spread over each estimate period. total 2020 tax less 2021 withholding = 2021 estimates of which 1/4 of the total must be paid on or before 4/15,6/15, 9/15 and 1/15/2022
2) withholding and estimated tax payments for 2021 = 90% of 2021 tax (good luck in figuring out what that will be)
3) 2021 tax less withholding leaves a balance of $1,000 or less.
4) 2021 tax less than $1,000 no estimates or withholding required.
not quite sure if the 20K is taxable income or gross income before standard or itemized deductions.or whether you have self-employment income.
