Quote:
Originally Posted by Bill14564
It looks like the 1040 and 2210 instructions do not agree. But, not a CPA or tax attorney so don't want to argue the point.
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I was referring to the following excerpt from the Form 2210 instructions:
"In general, you may owe the penalty for 2021 if the total of your
withholding and timely estimated tax payments didn't equal at least the
smaller of:
1. 90% of your 2021 tax, or
2. 100% of your 2020 tax. Your 2020 tax return must cover a
12-month period."
So, if you comply with item 2, you will not owe a penalty. I always pay 100 percent of the prior year tax and never owe a penalty. Note that higher income individuals may need to pay more.