If you owe additional tax for 2020, you may have to pay estimated
tax for 2021.
You can use the following general rule as a guide during the
year to see if you will have enough withholding, or if you should
increase your withholding or make estimated tax payments.
General Rule. In most cases, you must pay estimated tax for
2021 if both of the following apply:
1. You expect to owe at least $500 in tax for 2021, after subtracting
your withholding and credits.
2. You expect your withholding plus your credits to be less than
the smaller of:
a. 90% of the tax to be shown on your 2021 tax return, or
b. 100% of the tax shown on your 2020 tax return. Your
2020 tax return must cover all 12 months.
Special Rule for Higher Income Taxpayers
If your Alabama AGI for 2020 was more than $150,000
($75,000 if your filing status for 2021 is Married Filing a Separate
Return) substitute 110% for 100% in (2b) under General Rule,
For more information: