"If a taxpayer pays in 100% of the prior year tax or 90% of the current year tax (whichever is lower), the taxpayer does not owe underpayment penalties." - this statement is not always true.
Note these two things:
"Higher income taxpayers. If your adjusted gross income (AGI) for 2022 was more than $150,000 ($75,000 if your 2022 filing status was married filing separately), substitute 110% for 100% in (2) above." - Does this include you?
"Penalty figured separately for each required payment. The penalty is figured separately for each installment due date. Therefore, you may owe the penalty for an earlier due date even if you paid enough tax later to make up the underpayment. This is true even if you’re due a refund when you file your tax return. However, you may be able to reduce or eliminate the penalty by using the annualized income installment method." - This frequently puzzle people in how they can incur an underpayment penalty when they paid 90% of the current year tax.
It's because you must not only pay 100% or 90% of the various targets, but you must do it over the course of the year. Not paying anything for three quarters, then trying to make up the lack in the fourth quarter will get you penalized unless your income reflected the same variation.
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