As I said in an earlier post you can wait to pay the Massachusetts tax owed when you file the return; however, it will depend on how Massachusetts whether or not they will charge interest or penalty for not making estimates. Based on the information on page 18 of the instructions for 2020 Form 1, https://www.mass.gov/doc/2020-form-1-instructions/download, you would not qualify for that exception to making estimated payments.
Addition for underpayment of estimated tax. You will generally be subject to this addition to tax
if you did not have withholding and/or estimated payments equal to 80% of the total tax liability required to be paid and your 2020 tax due after credits and withholding is greater than $400. The 80% requirement is reduced to 66.67% for individuals who receive two-thirds of their income from fishing or farming. If you failed to meet these requirements, you must complete and enclose Massachusetts Form M-2210 to calculate the amount you must add to line 51. You do not have to complete Form M-2210 if the balance due with your return is $400 or less.
You may not be subject to an underpayment penalty if you qualify for one of the following exceptions:
◗ You are a qualified farmer or fisherman and are paying the full amount of the tax due on or before
March 1, 2021;
◗ You were a Massachusetts resident and were not liable for 2019 taxes (where the taxable year
was 12 months); or
◗ The sum of your estimated payments and withholding equals or exceeds your 2019 tax (where
the taxable year was 12 months and a return was filed).
If you qualify for one of these exceptions, fill in the Exception oval under line 51 on Form 1 and
enclose Form M-2210 indicating which of the exceptions applies to your circumstances.
A limited number of taxpayers may also qualify for a waiver of the underpayment penalty for one or
more installments if:
◗ The underpayment was because of casualty or disaster; or
◗ During 2019 or 2020 you retired after reaching age 62 or became disabled and the underpayment was due to reasonable cause and not willful neglect. If you think you qualify for one of these waivers, go to mass.gov/dor and use DOR’s online application for abatement return or enclose Form M-2210 and an explanatory statement with your return and fill in the Exception oval under line 51.
If your waiver is not for all four installments, complete Form M-2210 to calculate the underpayment
penalty for the installments which are not covered by the waiver. Form M-2210 is available by visiting mass.gov/dor.
Understanding penalties and interest assessed by DOR:
https://www.mass.gov/info-details/understanding-penalties-and-interest-assessed-by-dor
Here is a link to a calculator on the MA website to help estimate any potential penalty or interest. https://mtc.dor.state.ma.us/mtc/_/
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