Capital Gains tax payment for for next year

Forum|Forum|1 year ago
February 3, 2025
1 reply
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I sold a stock in January for a profit of $132k that I held for more than a year. How do I calculate how much taxes to prepay so I do not get hit with an underpayment penalty? (something I found out the hard way last year). I also have to prepay the FTB because I am in California. I am trying to figure out if I should use some of the profits to live off while maxing out my 401k and my wife's 403b to lower my tax liability. She is on track to make 90k and I will make about 95k. Also which edition is best suited for my situation? Is there an overpayment penalty? Thank you!

Not A Product Question

PatriciaV

Employee

Your best option is to create a new return in the current year version of TurboTax to estimate what your taxes would be. This allows you to make changes to your assumptions until you have the result you want. It's unlikely the tax code will change sufficiently to make this estimate unreliable. The IRS does not charge an overpayment penalty. But they also don't pay interest on the excess tax when you file next year with a refund due.

We recommend TurboTax for Desktop for this purpose because you can view all forms and not just Form 1040. Also, you can prepare as many returns as you like in the desktop version, including any states that you already purchased, for free as long as you don't actually file the return. Note that you won't be able to use this test return to file next year because TurboTax software is specific for the tax year of filing.

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