Filed married joint (agi > 150k) last year. Made big cap gains this year. Can I make an estimated tax payment at end of year to trigger safe harbor rule to avoid penalty?

[exponent500]

This applies to federal and california state taxes.

[Mike9241]

to avoid penalties  you must have

1) withholding and timely estimated tax payments => than 90% of 2021 tax

or

2) withholding and timely estimated tax payments => than 110% of 2020 tax 

if you meet either of these tests you can pay the balance due for 2021 on or before 4/15/2022 and not incur any penalties.

[exponent500]

Thanks Mike!

When you say “timely” estimated tax payments what do you mean?

Can I just pay the difference between 110% of prior year taxes owed and what I’ve withheld this year, at the end of this year and be ok?