Question

How do I set up estimated quarterly taxes for this year and when is first payment due? This is the first time I will be doing this as a result of capital gains,

Forum|Forum|5 years ago
June 6, 2021
2 replies
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I need to set up quarterly payments as it is expected that I will owe $17000 in taxes as a result of investment, How will I do that? Or can I pay at the end of the year all at once?

TurboTax Deluxe Online

DoninGA

Employee

In most cases, you must pay estimated tax for 2021 if both
of the following apply.
1. You expect to owe at least $1,000 in tax for 2021,
after subtracting your withholding and refundable credits.
2. You expect your withholding and refundable 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.

You can pay estimated taxes directly on the IRS payment website for tax year 2021 - https://www.irs.gov/payments

Estimated payment due dates for 2021 -

2nd payment ................ June 15, 2021
3rd payment ................. Sept. 15, 2021
4th payment ................. Jan. 18, 2022

T

tdbrains

Estimated Tax payments are recommended anytime your withholding is insufficient. The IRS defaults to taking your current year tax liability and allocating it evenly across the months. But if you income is not regular, (e.g capital gains and IRA distributions are likely non-regular income) then estimated payments are like needed to avoid penalties. But my main here point is that the estimated payment are not due exactly on calendar quarters as you might expect. At least as of 2022 tax year, they are due 3/31, then 5/31, then 8/31 and lastly by 1/15 of the subsequent year. Precise records of when you received income (by category of ST &LT Cap Gains and Divs) by these dates is required to fight via a 2210 form.

M

Mike9241

since it seems you did not pay the 4/15 estimate you need to pay 1/4 ASAP (this will reduce penalties) or pay 1/2 on or before 6/15 and then 1/4 each on 9/15 and 1/17

however, you don't have to pay estimates that exceed the lower of the amounts specified in the other thread.