J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

27.1 Do You Owe an Estimated Tax Penalty for 2012?

When you have computed the exact amount of your 2012 tax liability on your 2012 return, you can determine whether you are subject to an estimated tax penalty. If you owe less than $1,000 on your 2012 return after taking into account withheld taxes, you are not subject to a penalty. If the tax owed after withholdings is $1,000 or more, you can now determine whether your 2012 withholdings plus estimated tax installments were at least 90% (66 ²/₃ % for farmers and fishermen) of your 2012 total tax.

Total tax here means not only your 2012 regular income tax and alternative minimum tax (AMT) liability after credits, but also other taxes such as self-employment tax, household employment taxes, penalty taxes (such as penalties on early retirement plan distributions and on distributions from qualified tuition programs not used for education), and taxes from recaptured credits. If you met the 90% test, you are not subject to an estimated tax penalty for 2012.

Even if the 90% test was not met, you may be able to avoid a penalty if your 2012 withholdings and estimated tax installments were at least 100% of the total tax (see above) shown on your 2011 return. This exception requires that the 2011 return covered all 12 months. However, if your 2011 adjusted gross income exceeded $150,000 ($75,000 if you are married filing separately for 2012), your withholdings plus estimated tax installments for 2012 had to be at least 110% of your 2011 total ...