After I filed my Hawaii tax return, it shows that there is a penalty for underpayment. However, I already paid all the tax I owed. After checking, I'm wondering that the penalty might be derived from no-withholding of income. It shows that one may owe the penalty for 2020 if the total of withholding and timely estimated tax payments were less than the smaller of :
1. 60% of 2020 tax, or
2. 100% of 2019 tax.
Since my income was in forms of stipends instead of wages and was not subject to tax withholdings. Does this mean I must pay the penalty if I paid all the 2020 tax this month?
Should I pay quarterly estimated tax payments to avoid this penalty in 2021?
What is your suggestions?
Thank you!
