Exceptions to the Penalty - no estimates required for 2021
You won't have to pay the penalty or file this form if either of the following applies.
• You had no tax liability for 2020, you were a U.S. citizen or resident alien for the entire year (or an estate of a domestic decedent or a domestic trust), and your 2020 tax return was (or would have been had you been required to file) for a full 12 months. (you must have filed a return)
• The total tax shown on your 2020 return minus the amount of tax you paid through withholding is less than $1,000. To determine whether the total tax is less than $1,000, complete Part I, lines 1 through 7.
if you don't meet the penalty exception based on the above you can also avoid penalties if
1) withholding and timely estimated tax payments are 90% of 2021 tax
or
2) withholding and timely estimated tax payments are 100% of 2020 tax (110% % if 2020 AGI $150K or more)
(substitute $75K if married filing separate)
25% must be paid each quarter 3/31/2021. 5/31/2020, 8/31/2021, 12/31/2021
however, the actual due dates for estimated tax payments are 4/15/2021, 6/15/2021, 9/15/2021 1/17/2022
