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Paying in Advance

Forum|Forum|4 years ago
November 6, 2021
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Sorry that this question does not really fall into the Deductions & credits category, but it doesn't really fall into any category.

I sold my website this year - I have made money through advertising on it for a number of years and reported that income.

Do I need to prepay taxes on the sale or can I wait until I fill out my taxes. I am wondering if there are negative consequences for owing a large amount in April.

Thanks -

george

Not A Product Question

Best answer by Critter-3

Do I need to make estimated tax payments to the IRS?

PAYING ESTIMATES

You must make quarterly estimated tax payments for the current tax year (or next year) if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.

- 2. You expect your withholding and credits to be less than the smaller of:
90% of the tax to be shown on your current year’s tax return, or
100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

Critter-3Answer

Do I need to make estimated tax payments to the IRS?

PAYING ESTIMATES

You must make quarterly estimated tax payments for the current tax year (or next year) if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.

- 2. You expect your withholding and credits to be less than the smaller of:
90% of the tax to be shown on your current year’s tax return, or
100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)