Because of the number of changes in the rules for 2018 triggered by the Tax Cuts and Jobs Act, the IRS is waiving estimated tax penalties for certain individuals (IR-2019-03, 1/16/19). Usually, there’s no penalty if you pay at least 90% of what’s owed for the year through withholding and estimated taxes. For 2018, the IRS is lowering this threshold to 85%.
It is expected that tax preparation software will be adjusted to reflect this new percentage. Similarly, Form 2210 and the instructions will be revised accordingly.
Note: Even if you fall short of this 85% tax payment requirement, you may still escape estimated tax penalties in other ways:
A sale of property that allows for tax deferment if at least one payment is received after the end of the tax year in which the sale occurs. The installment method does not apply to year-end sales of publicly traded securities. Dealers may not use the installment method. Investors with very large installment balances could face a special tax.