Yes, you should make estimated tax payments for 2021 and 2022 if you expect to owe more than $1,000 since there is no exception because of the COVID distribution.
Generally, most taxpayers will avoid this penalty if you either owe less than $1,000 in tax after subtracting their withholding and refundable credits, or if they paid withholding and estimated tax of at
- least 90% of the tax for the current year or
- 100% of the tax shown on the return for the prior year (110% for those whose AGI is higher than $150k), whichever is smaller.
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