If I sell stock and have a large gain ($80,000 of gain) when my total income is normally around $100K, how do I prevent underpayment penalties?
I have withholdings on my $50K pension but would have to ratchet them up a lot to cover this kind of gain. Can I just take 15% of the gain and pay that in estimated taxes the same quarter that I sold the stock?
Yes that is exactly what the IRS wants. The IRS expects to be paid the same quarter you make the income. You can make estimated payments online at Payments.
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