rjs
Level 15
Level 15

Investors & landlords

I also hope you meant 2021. It's much too late to make an estimated tax payment for 2020. If you have not yet paid your 2020 tax you just have to file the tax return and pay the tax as soon as possible, and you cannot avoid penalties for late filing and late payment.


If you are talking about 2021, estimated tax payments do not count towards the 110% of your 2020 tax. To be sure of avoiding the penalty your withholding and tax credits must be at least 110% of your 2020 tax. You can also avoid the penalty if your withholding and tax credits are at least 90% of your 2021 tax, or if the amount you owe is less than $1,000.


I am using the 110% figure because that's what you stated. If your 2020 AGI was $150,000 or less ($75,000 if married filing separately) the requirement is 100% of your 2020 tax.


If you sold the property late in the year, you may be able to reduce or eliminate the penalty by using the annualized income method on Form 2210. TurboTax will walk you through it.