Question

Payment of estimated taxes on capital gains

Forum|Forum|5 years ago
April 29, 2021
1 reply
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I sold property in Dec of 2020 and paid estimated taxes in Jan 2021. When I did my Indiana state taxes it is penalizing me $89 for not paying the estimated taxes the first 3 quarters. Is there a way to get rid of the penalty since I didn't know I'd have the capital gain until the end of the year? I can't figure out how to change it in Turbo Tax.

AmyC

Employee

If you sold the house in the last quarter, then you can use that information to lower the penalty. If you sold it earlier but did not pay the taxes, then you would have a penalty.

As you go through the program, it states you have a penalty. It will ask about seasonal income which includes a lump sum distribution, select yes. Then 3 boxes show up for you to put the income earned to date, for the first 3 quarters. If the mass of your money was in the 4th quarter, the program figures it out.

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